ntpc annual report-2010ntpcindia.com/.../annual_reports/2009-10-subsidiary-companies.pdf · 34th...

34th Annual Report 2009-2010 145

SUBSIDIARY COMPANIES

NTPC ELECTRIC SUPPLY COMPANY LIMITED

(A wholly owned subsidiary of NTPC Limited)

DIRECTORS’ REPORT

To

The Members,

Your Directors have pleasure in presenting the Eighth Annual Report on the working of

the Company for the fi nancial year ended on 31st March 2010 together with Audited

Statement of Accounts, Auditors’ Report and Review by the Comptroller & Auditor

General of India for the reporting period.

FINANCIAL RESULTS

(Rs. Crore)

2009-10 2008-09

Total Income/Revenue 79.96 78.48

Total Expenditure 40.28 49.96

Prior period income/expenditure (net) (0.72) -

Profi t before Tax 40.40 28.52

Less: Tax 13.81 10.04

Profi t after Tax 26.59 18.48

Balance brought forward 23.98 10.27

Balance available for appropriation 50.57 28.75

Transfer to General Reserve 2.70 1.85

Proposed Dividend 4.00 2.50

Tax on proposed Dividend 0.68 0.42

Surplus carried forward 43.19 23.98

DIVIDEND

Your Directors have recommended a dividend of Rs. 4 Crore @ Rs. 494.38 per equity

share on the face value of fully paid-up equity share capital of Rs. 10/- each. The

dividend shall be paid after your approval at the Annual General meeting.

OPERATIONAL REVIEW

Your Company has received ‘Excellent’ rating against the achievement of MoU target

for the years 2005-06, 2006-07, 2007-08 and 2008-09 in succession.

Your Company has made a foray into distribution sector wherein its Joint Venture

Company, KINESCO Power and Utility Private Limited, has taken over operations in

Kakkanad Industrial area at Kochi, Kerala from the erstwhile licensee w.e.f. February

1, 2010. The current load is about 14 MW with a projected load ramp up to 180 MW

in next fi ve years.

Under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), a fl agship programme

of the Government of India introduced in March 2005 with objective of providing

access to electricity to all rural households, the Company is carrying out project

implementation in 29 districts in the states of Madhya Pradesh, Chhattisgarh, Orissa,

Jharkhand and West Bengal for electrifying 15814 Un-electrifi ed/De-electrifi ed

villages and providing 26.94 lacs Below Poverty Line household connections. The

Company is also carrying out various consultancy assignments in distribution sector.

Your Company has been conferred the ‘Chairman’s Trophy for Excellence in

maintaining Financial Accounts’ amongst all subsidiaries of NTPC Limited for the year

2008-09, the second time in the last three years including the inaugural edition for

the year 2006-07.

A detailed discussion on operations and performance for the year is given in

“Management Discussion and Analysis”, Annexure - I included as a separate section

to this report.

FIXED DEPOSITS

The Company has not accepted any fi xed deposit during the fi nancial year ending

31st March 2010.

AUDITORS’ REPORT AND MANAGEMENT COMMENTS THEREON

The Comptroller & Auditor General of India (C&AG) has appointed M/s Satish K.

Aggarwal & Co., Chartered Accountants as the Statutory Auditor of the Company for

the fi nancial year 2009-10.

In their report, the Statutory Auditors of the Company have drawn attention of

the members to Note no. 9 of schedule 19 to the fi nancial statements. The note

explains basis for recognition of income from consultancy contracts and is as per the

Accounting Policy adopted by the Company.

C&AG REVIEW

C&AG, vide letter dated May 12, 2010, has decided not to review the report of the

Auditors on the accounts of the Company for the fi nancial year 2009-10 and as such

has no comments to make under Section 619(4) of the Companies Act, 1956. A

copy of the letter issued by C&AG in this regard is placed with the report of Statutory

Auditors of your Company.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO

There are no signifi cant particulars, relating to conservation of energy, technology

absorption under the Companies (Disclosure of particulars in the Report of Board

of Directors) Rules, 1988, as your Company does not own any manufacturing facility.

During the period under review there are no foreign exchange earnings and outgo.

PARTICULARS OF EMPLOYEES

The Particular of employees pursuant to Section 217 (2A) of the Companies Act,

1956 are given in Annexure - II.

DIRECTORS’ RESPONSIBILITY STATEMENT

As required under Section 217 (2AA) of the Companies Act, 1956, your Directors

confi rm that:

i) in the preparation of the annual accounts, the applicable accounting standards

had been followed along with proper explanation relating to material

departures;

ii) the directors had selected such accounting policies and applied them

consistently and made judgments and estimates that are reasonable and

prudent so as to give a true and fair view of the state of affairs of the company

at the end of the fi nancial year 2009-10 and of the profi t of the company for

that period;

iii) the directors had taken proper and suffi cient care for the maintenance of

adequate accounting records in accordance with the provisions of the

Companies Act, 1956, for safeguarding the assets of the company and for

preventing and detecting fraud and other irregularities; and

iv) the directors had prepared the annual accounts on a going concern basis.

DIRECTORS

Shri R.K. Jain and Shri R.C. Shrivastav consequent upon their superannuation from

the services of NTPC Limited have ceased to be the Directors of the Company w.e.f.

December 31, 2009 (A/N) and June 30, 2010 (A/N), respectively. The Board wishes

to place on record its deep appreciation for the valuable services rendered by Shri

R.K. Jain and Shri R.C. Shrivastav during their association with the Company.

The Board of Directors, at its Meeting held on July 14, 2010, had appointed Shri S.C.

Pandey, Executive Director (Engg.), NTPC Limited as an Additional Director of the

Company. Shri S C Pandey holds offi ce up to the date of this Annual General Meeting

but is eligible for appointment.

In accordance with the provisions of Companies Act, 1956, Shri R.S. Sharma,

Chairman shall retire by rotation at this Annual General Meeting of your Company

and, being eligible, offers himself for re-election.

ACKNOWLEDGEMENT

The Board of Directors wishes to place on record its appreciation for the support,

contribution and co-operation extended by the Ministry of Power, various state

governments, state utilities, customers, contractors, vendors, the Auditors, the

Bankers, NTPC Limited and the untiring efforts made by all employees to ensure that

the company continues to perform and excel.

For and on behalf of the Board of Directors

Place : New Delhi (R S Sharma)

Date : July 15, 2010 Chairman

34th Annual Report 2009-2010146

conduct specifi c studies for generating green power by wind farms in locations having high wind energy potential.

The above opportunities shall also mitigate concerns towards proper utilization and

deployment of experienced manpower resource available with the Company.

With a bright outlook of an economic growth projected at more than 8%, the

country is witnessing huge potential investments in core infrastructure areas. With

the increasing demand gap, the power sector is also looking towards large infusion

of investments. State owned transmission companies are seeking to augment its bulk

power transmission capacity. Your Company sees opportunities in not only the EPC

area but in ownership model as well where prospects of dedicated transmission

lines exist and are likely to explore more possibilities in this business segment.

RISKS AND CONCERNS

So far the main thrust area of your Company has been project implementation on

deposit work basis under RGGVY. This activity is expected to last another 12-15

months after which a sudden decline in the revenue stream is foreseen which is

perceived as a major concern.

Although the new Electricity Act 2003 provides ample opportunities to new players

in the fi eld of retail distribution but in reality the state owned discoms have not

implemented the same in spirit. The Act envisaged growth of electricity industry

through private licensees by introduction of open access and phased withdrawal of

cross subsidy but so far these regulations are quite far from realization. Therefore,

one of the major risks anticipated by your Company is the inability to make a

perceptible presence in the distribution sector under such scenario.

Today total manpower strength of the Company is 177 spread over more than 35

locations across the country. In the event of a sharp decline in revenue stream, it

may not be possible to sustain such large manpower resource. The frittering away of

manpower which has gathered experience and capability in distribution engineering

and execution is another concern. In the absence of any sustainable revenue and

to address this concern your Company shall explore the possibility of repatriating

manpower back to NTPC Ltd.

INTERNAL CONTROL

Your Company has adequate internal control systems and procedures in place

commensurate with the size and nature of its business. Your Company has adopted

the internal control system of its holding company viz. NTPC Limited. The authorities

vested in various levels are exercised within framework of appropriate checks and

balances. The effectiveness of the checks and balances and internal control systems

are reviewed during internal audit carried out by Internal Audit Department of NTPC

Limited. An independent internal audit is also carried out by experienced fi rms of

Chartered Accountants in close co-ordination with departments of the Company

and Internal Audit Department of NTPC Limited.

PERFORMANCE DURING THE YEAR

Operations

During the period under review, your Company has undertaken rural electrifi cation

projects under RGGVY in the states of Madhya Pradesh, Chhattisgarh, Orissa,

Jharkhand and West Bengal.

The scheme was launched in April 2005 by merging all ongoing rural electrifi cation

schemes. The programme aims at electrifying all villages and habitations, providing

access to electricity to all rural households and providing electricity connection to

Below Poverty Line (BPL) families free of charge. Under the programme, 90% grant is

provided by the Govt. of India and 10% as loan by Rural Electrifi cation Corporation

Limited (REC) to the State Governments. REC has been appointed as a nodal agency

for the programme.

NTPC Ltd. had entered into a Memorandum of Understanding with REC for

implementing and achieving objectives of the programme. Your Company, on behalf

of NTPC, is working as an implementing agency.

Staring with 237 Un-electrifi ed/De-electrifi ed (UE/DE) villages and 0.20 lacs BPL

connections achieved up to March 2008, your Company touched 1864 UE/DE

villages and provided 1.85 lacs BPL connections in fi nancial year 2008-09.

In the fi nancial year 2009-10, against ambitious target of electrifying 7500 UE/DE

villages and providing 8.50 lacs BPL household connections, set by the Government

of India in the MOU, your Company achieved a higher performance by making ready

8017 UE/DE villages and providing 8.65 lacs BPL connections. This was possible by

making, amongst other measures, the following proactive interventions:

• enhancing manufacturing capacity and productivity of pole, MS material and

BPL kit manufacturers.

• leveraging IT for better monitoring by developing two tailor-made web based

in-house software - Rural Electrifi cation Data Management System (REDMS) for

progress reporting and Material Tracking System from inspection call to receipt

of material at sites.

• implementation of mechanized pole erection by composite earth drilling

and pole pitching augur machine against traditional manual method thereby

increasing productivity manifold.

• replacing manually manufactured wooden meter boards by injection moulded

polycarbonate switch boards thereby sharply increasing productivity through

mass production.

Annexure-IManagement Discussion and Analysis

INDUSTRY STRUCTURE AND DEVELOPMENTS

DISTRIBUTION

The Electricity Act 2003 requires the state governments to set up State Electricity Regulatory Commissions for rationalization of energy tariffs and formulation of policy within each state. As of March 31, 2010, all the states, except Arunachal Pradesh, have set up their Regulatory Commissions. In addition, two Joint Electricity Regulatory Commissions have been set up for Manipur & Mizoram and Goa & UTs. 17 state electricity boards have so far been unbundled into separate generation, transmission and distribution companies. The aim is to bring in reforms in sector for effi cient operation of the state electricity boards.

Despite unbundling and corporatizing, the state governments are reluctant for privatization and acquisition of the state owned discoms by other players and thus there has not been any substantial initiative or action towards this objective. Franchisee model is an option which the state governments are now considering after success of this model in Bhiwandi in Maharashtra. On the whole, even franchisee model has not thrown any major opportunity on a large scale.

The country is now poised for a new era in distribution sector where industrial and commercial consumers are willing to pay commensurate tariffs for enjoying quality and reliable power.

The Electricity Act 2003 provides an opportunity to bulk consumers with a load of more than 1 MW to source its’ power requirement from elsewhere in the country through Open Access for which the state utility is obliged to provide necessary clearances. This provides an opportunity in various industrial and Special Economic Zones (SEZ) which are being promoted by private players as well as the state industrial development corporations wherein a contiguous geographical area of all such consumers can be earmarked and power fed from upcoming NTPC and other merchant power plants. Today, wherever major industrial development is taking place, this business model offers tremendous opportunity as quality and reliable power can be assured to these growing industries.

Another great opportunity for meeting power demand of high end consumers is foreseen in dedicated rail freight corridor projects which envisage development of multiple industries along rail corridor in different states. Your company is watching development of this project closely so as to take advantage of the opportunity which it may offer in near future.

Development of Renewable Energy Sources (RES)

Today, RES is at 16429 MW accounts for 7.7% of the total installed capacity of nation which stands at 162366 MW. This is targeted to grow to 200000 MW by 2012 of which RES is expected to contribute 25000 MW. Over longer term, the importance of RES would be more strategic in view of its important role in mitigating the effects of climate change. It is imperative for India to build a certain level of self-reliance in renewable technologies of the future. The Government, in its quest for long-term energy and environmental security, is seeking to enhance the share of renewable power in the overall energy basket. 70% of renewable energy is contributed by wind power generation where potential exists for 45000 to 65000 MW of on-shore wind power.

With the launch of Jawaharlal Nehru National Solar Mission, India has embarked upon an ambitious path to tap the vast and inexhaustible solar source. Going by emerging trends, it is amply clear that green technology is set to be the next growth sector.

Your Company is watching these developments closely with a view to occupy the space created by such opportunities.

STRENGTH AND WEAKNESS

Your Company’s strength lies in its association with a strong promoter viz. NTPC Limited having a formidable track record in power project construction, commissioning, operation and maintenance for the last 35 years.

The professional manpower from NTPC Ltd., on secondment at your Company, has been able to leverage the knowledge gained from power project engineering and execution to the distribution sector as well.

Your Company is exposed to the risk arising out of delay in release of funds from owners /clients in the execution of deposit works on their behalf and project handing over and the risk of reduction in profi t margins in case of time overrun of such projects.

OPPORTUNITIES AND OUTLOOK

With the uncertainty in privatization and acquisition of state owned discoms by other players, the Company feels that growing need of various industrial and SEZ in the country offers excellent opportunities in electricity distribution. Towards this, your Company may foray either on its own or by forging alliances with developers wherein pre-identifi ed group of industrial and commercial consumers can be serviced by arranging required input power from upcoming NTPC merchant power plants. Exploratory actions have been initiated in this direction. If successful, this model can be replicated in various such places across the country.

To enhance value chain, your Company had signed three MOUs in the year 2008 with leading real estate and SEZ developers for captive power generation with mini gas turbines and its retail distribution within the notifi ed SEZ. However, these projects could not take off owing to global economic meltdown. With the economic scenario in the country once again looking up, the proposal is being revived.

To advance its operational and fi nancial stability, one of the key opportunities the Company foresees is in RES in general and solar & wind projects in particular. Your Company is looking towards this opportunity with great interest and is planning to


Your Company has now set an ambitious target of electrifying balance 5100 UE/DE

villages and providing 12.50 lacs BPL household connections for the year 2010-11 in

the allocated 29 districts.

Your Company, during the year, has also provided Project Management Consultancy

Services for setting up 220 KV substation, switchyard & connected facilities related

to CEMP - II for BPCL, Kochi Refi nery Ltd., Pre-award Contract Management Services

for Orissa Power Transmission Corporation Ltd., and turnkey execution for power

supply arrangement for port based SEZ for the Cochin Port Trust.

Your Company has also provided Third Party Inspection Agency services of rural

electrifi cation projects for PGCIL and third party inspection of stock materials for Uttar

Haryana Bijli Vitaran Nigam Limited and Uttarakhand Power Corporation Limited.

Your Company has also successfully completed assignment for preparation and fi ling

of ARR and tariff petition for Electricity Department, Puducherry before the Joint

Electricity Regulatory Commission.

In the pursuit of its efforts to provide consultancy services to various discoms,

utilities and other customers in their various projects of distribution infrastructural

development, your Company has bagged turnkey execution of two nos. 66/11 kV

sub-stations for the Union Territory of Chandigarh and has signed an agreement with

NTPC Ltd. for making the infrastructure for power supply arrangements at NTPC coal

mining projects.

Financial Performance

The main revenue of your Company has been realized by consultancy, project

management and supervision fees.

(Rs. Crore)

2009-10 2008-09

Sales 75.76 71.73

Other income 4.20 6.75

Total 79.96 78.48

Revenue from RGGVY projects in the fi nancial year 2009-10 contributed approx. 87% of

total sales, unchanged from the previous year. Interest from banks contributed approx.

99% of the total other income as compared to 90% in the previous fi nancial year.

The decrease in other income was primarily due to lower bank interest rates on

account of slow down in the economy.

The expenditure incurred by your Company on account of employees’ remuneration

and administrative expenses for the current year as well as previous year is as follows:

(Rs. Crore)

2009-10 2008-09

Employees’ remuneration and benefi ts 26.37 23.27

Administrative and other expenses 13.61 26.48

Total operating expenses 39.98 49.75

The reduction in administrative expenses is on account of DPR preparation charges

for RGGVY projects considered in the previous fi nancial year.

The total expenses including operating expenses of the Company are as follows:-

(Rs. Crore)

2009-10 2008-09


Depreciation 0.29 0.21

Provision, Interest & fi nance Charges 0.01 -

Total Expenses including operating expenses 40.28 49.96

The depreciation cost as compared to total expense is negligible since the fi xed

assets are represented by furniture and fi xtures, EDP machines etc. and the Gross

Block was of the order of Rs. 1.88 crore as on 31.3.2010.

(Rs. Crore)

2009-10 2008-09

Profi t before tax and prior period adjustments 39.68 28.52

Prior period income/expenditure(net) (0.72) -

Profi t before tax 40.40 28.52

Provision for current, deferred and fringe benefi t tax 13.81 10.04

Net profi t after tax 26.59 18.48

During the period under review, the profi t before tax increased by approx. 42% due

to increase in sales and reduction in administrative and other expenses.

The net profi t after tax has increased to Rs. 26.59 crore as compared to Rs. 18.48

crore in the previous period.

Reserves & Surplus

A sum of Rs. 2.70 crore has been added to Reserves and Surplus after appropriating

dividend and dividend tax during the current year as compared to Rs. 1.85 crore

during the previous year.

Current Assets, Loans and Advances

The current assets, loans and advances at the end of the year were Rs. 1149.23 crore

as compared to Rs. 637.97 crore last year registering an increase of approx. 80%.

(Rs. Crore)

31.3.2010 31.3.2009

Sundry debtors 20.63 17.21

Cash and bank balances 1103.70 604.42

Other current assets 11.85 4.26

Loans and advances 13.05 12.08

Total Current Assets, Loans and Advances 1149.23 637.97

The increase was mainly on account of increase in cash and bank balances to Rs. 1103.70

crore from Rs. 604.42 crore due to release of more funds by REC for RGGVY projects.

The major amount of sundry debtors, constituting approx. 51%, was outstanding

from Ministry of Power for services rendered as Advisor-cum-Consultant under the

APDRP scheme. The realization of these dues with the Ministry of Power was pursued

on a continuous basis and is expected in the fi nancial year 2010-11.

Current Liabilities and Provisions

During the fi nancial year 2009-10, current liabilities and provisions have increased

to Rs. 1101.26 crore as compared to Rs. 611.45 crore in the fi nancial year 2008-09

mainly on account of amount received for deposit works.

(Rs. Crore)

31.3.2010 31.3.2009

Liabilities 1096.20 606.67

Provisions 5.06 4.78

Total Liabilities and Provisions 1101.26 611.45

The provisions have increased mainly due to increase in provision of proposed

dividend and tax thereon.

Cash Flow Statement (Rs. Crore)

2009-10 2008-09

Opening Cash and cash equivalents 604.42 194.61

Net cash from operating activities 506.00 409.35

Net cash used in investing activities (3.79) 2.51

Net cash fl ow from fi nancing activities (2.93) (2.05)

Net Change in Cash and cash equivalents 499.28 409.81

Closing cash and cash equivalents 1103.70 604.42

The closing cash and cash equivalents for the fi nancial year ended March 31, 2010

has increased 1.83 times to Rs. 1103.70 crore from Rs. 604.42 crore.

Financial Indicators

The various performance indicators for the current year as compared to previous

year are as under:

2009-10 2008-09

Capital employed in Rs. Crore 49.38 27.47

Net worth in Rs. Crore 49.38 27.47

Return on capital employed (PBT/CE) 81.81% 103.82%

Return on net worth (PAT/NW) 53.85% 67.27%

Dividend as % of equity capital (basic/average) 4944 3090

Earning per share in Rs. 3286.38 2284.54

The capital employed as well as net worth has increased due to higher profi ts earned

during the fi nancial year 2009-10.

Human Resources

As on 31st March 2010, there were 177 employees posted on secondment basis from

holding company viz. NTPC Limited. To achieve the ambitious targets, the Company

has drawn professional manpower from NTPC who have rich experience in dealing

in various technical, fi nancial and commercial issues. Today, your Company is proud

to state that it has built a competent manpower base required for its growth in the

distribution sector.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Company’s

objectives, projections, estimates and expectations are “forward-looking”

statements within the meaning of applicable laws and regulations. Actual results

may vary materially from those expressed or implied. Important factors that could

make a difference to the Company’s operations include economic conditions

affecting demand/supply and price conditions in the markets in which the Company

operates, changes in Government regulations & policies, tax laws and other statutes

and incidental factors.


Place : New Delhi (R S Sharma)

Date : July 15, 2010 Chairman


Annexure-II to Directors’ Report

PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 217 (2A) OF THE COMPANIES ACT, 1956:

Name Designation and Nature of duties

Remuneration(in Rs.)

Qualifi cation Date of commencement of employment

Exp. (yrs.)

Age (yrs.)

Last employment held

1. 2. 3. 4. 5. 6. 7. 8.

Employed for whole of the year

Shri Ajay Chaturvedi DGM (Proj Coord) 27,34,897 MBA (Finance), B.Sc.

(Electrical Engg)

06.09.1986 23 44 NTPC Limited

Shri Ajoy Jaiswal DGM (Finance) 25,86,985 MBA, M Com, B Com

(Hons-Accountancy)

24.10.1984 25 46 NTPC Limited

Shri Arun Kumar Gupta AGM (C&M) 25,93,082 PG Diploma (Material Mgmt.),

B Sc (Electrical Engg)

10.11.1980 29 52 NTPC Limited

Shri Ashish Kundu DGM(C&M) 27,37,939 ICWA (Cost & Work Acct.),

B.E.(Electrical Engg)

09.09.1986 23 46 NTPC Limited

Shri Asim Kumar Poddar AGM (Proj Coord) 30,35,283 B.E. (Electrical Engg) 17.09.1981 28 50 NTPC Limited

Shri Asim Kumar Ray DGM (Proj Coord) 25,95,952 B.Tech.(Electronics Engg),

B Sc (Hons)-Physics

15.11.1978 31 55 NTPC Limited

Shri Bimal Kumar Sen AGM (Proj Coord) 26,40,191 B.E. (Electrical Engg) 14.02.1983 27 59 Tarapur Atomic

Power Station

Shri Biswanath Chatterjee DGM (Proj Coord) 25,21,203 B.E. (Electrical Engg) 06.09.1983 26 49 NTPC Limited

Shri Biswanath Mukherjee GM (Proj Coord) 24,07,953 B.E. (Electrical Engg) 05.02.1982 28 56 DAE, Heavy Water

Project

Shri G Sridhar Sr. Manger (P&M) 28,41,623 B.Tech.(Civil Engg) 28.09.1987 22 49 Mahalinga

Shetty&Co.Ltd.

Shri Ganesh Venkatraman DGM (ENGG) 28,86,124 M.Tech. (Energy Mgt.),

B.E.(Electronics Engg)

27.06.1984 25 59 Hindustan Brown

Bovery Ltd.

Shri George Thomas DGM (Proj Coord) 24,34,176 PG Diploma (Energy Mgmt),

B.Tech. (Electrical Engg)

27.08.1985 24 46 NTPC Limited

Shri Gopal Dutt Joshi DGM (P&M) 26,01,059 M.Tech.(Mgmt Science),

B Tech (Electrical Engg)

12.09.1983 26 48 NTPC Limited

Shri Jagadish Bhattacharyya DGM (Proj Coord) 26,75,585 M.E.(Thermal Engg), B.E .

(Mech Engg)

15.04.1985 25 54 W B S E B

Shri Janhvi Shanker GM (Proj Coord) 24,99,273 B.Tech. (Electrical Engg) 02.02.1981 29 51 NTPC Limited

Shri Kamaleswar Pal DGM (Proj Coord) 25,40,394 B.E. (Electrical Engg) 15.11.1978 31 55 NTPC Limited

Shri Kishore Kumar Gupta DGM (Proj Coord) 28,18,375 B.Sc.( Electrical Engg.) 29.10.1986 23 53 HITEK Industries Ltd.

Shri Krishna Narjala Bhat DGM (Proj Coord) 25,91,175 B.E. (Electrical Engg) 10.09.1985 24 47 NTPC Limited

Shri Kushal Banerji DGM(Proj Coord) 24,20,339 B.Tech.(Electrical Engg),

B.Sc. (Science)

16.09.1981 28 52 NTPC Limited

Shri Laxmi Narayan Patnaik DGM(Proj Coord) 31,22,143 B.Sc.( Electrical Engg.) 19.11.1983 26 49 NTPC Limited

Shri Nand Lal DGM (Proj Coord) 27,98,169 B.E. (Electrical Engg) 26.11.1979 30 53 NTPC Limited

Shri N M Sharma DGM (C&M) 29,75,644 PG Diploma (Production

Mgmt),B.Sc.(Electrical Engg)

12.09.1983 26 51 TISCO

Shri Pawan Kumar Garg DGM(EDC) 36,94,766 MBA (Finance), B.Sc.

(Hons)-Physics

30.12.1983 26 60 NPC

Shri Pankaj Kumar DGM (HR) 24,93,606 Diploma (General Mgmt),

B.Tech. (Mech Engg)

03.11.1982 27 48 NTPC Limited

Shri Pradeep Kumar Mohapatra AGM (Proj Coord) 29,80,861 B.Sc.( Electrical Engg.) 29.04.1987 23 50 SAIL

Shri P K Dokania DGM (Proj Coord) 24,58,762 B.Sc.(Mech. Engg.) 29.11.1986 23 52 BSEB

Shri Rakesh Prasad Mathur Sr. Manger (C&M) 27,32,190 Diploma (Mech Engg) 04.07.1987 22 55 AUTO TRACTORS LTD

Shri Shridhar Madhukar

Chauthaiwale

AGM (Proj Coord) 24,24,154 B.E. (Electrical Engg) 19.11.1983 26 48 NTPC Limited

Employed for part of the year

Shri Joseph Kurian GM (Proj Coord) 23,18,637 B.Sc. ( Electrical Engg.) 17.12.1980 29 52 NTPC Limited

Shri K D Gupta GM (Proj) 33,17,940 B E (Electrical Engineering) 24.07.1978 31 59 HSCL

Shri S C Gupta DGM (Proj

cordination)

21,79,301 B E (Electrical Engineering) 12.03.1987 23 57 Bongaigaon Refi nery

& Petrochemical Ltd

Notes:

1. The employee mentioned above is posted on secondment basis from NTPC Limited and is not related to any Directors of the Company.

2. Remuneration includes salary & allowances and perks, permissible under holding Company’s rules.


Place: New Delhi (R.S. SHARMA)

Date: July 15, 2010 CHAIRMAN


NTPC ELECTRIC SUPPLY COMPANY LIMITEDBALANCE SHEET AS AT 31st MARCH 2010

Rs.Sch. No. 31.03.2010 31.03.2009

SOURCES OF FUNDSSHAREHOLDERS’ FUNDS

Capital 1 809100 809100Reserves & surplus 2 493034036 273931152Deferred tax liability 625423 305384

TOTAL 494468559 275045636APPLICATION OF FUNDSFixed Assets 3

Gross Block 18825670 13490095Less: Depreciation 7167713 4163224Net Block 11657957 9326871

INVESTMENTS 4 3100000 500000CURRENT ASSETS, LOANS AND ADVANCES

Sundry debtors 5 206358117 172140041Cash and bank balances 6 11036983283 6044154479Other current assets 7 118515443 42647669Loans and advances 8 130478356 120801194

11492335199 6379743383LESS:CURRENT LIABILITIES AND PROVISIONSLiabilities 9 10961969147 6066723399Provisions 10 50655450 47801219

11012624597 6114524618Net current assets 479710602 265218765 TOTAL 494468559 275045636 Contingent liabilities 11Notes on accounts 19Schedules 1 to 19 and accounting policies form integral part of accounts.

As per our report of even date For Satish K. Aggarwal & Co.Chartered Accountants For & On Behalf of the Board of Directors

(Pranav Aggarwal) (S P Singh) (A K Singhal) (R S Sharma)Partner Chief Executive Offi cer Director Chairman Place: New DelhiDated: 7th May, 2010

PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31st MARCH 2010Rs.

Sch. No. Current Year Previous YearINCOMESales 12 757563215 717262863Other income 13 42017646 67560930Total 799580861 784823793EXPENDITUREEmployees’ remuneration and benefi ts 14 263657155 232662686Administration and other expenses 15 136106657 264855533Depreciation 2913281 2091683Provisions 16 45458 - Interest & fi nance charges 17 62243 13830Total 402784793 499623732Profi t before Tax & Prior Period Adjustments 396796068 285200061 Prior Period income/expenditure (net) 18 (7214855) - Profi t before tax 404010923 285200061Provision for:

Current tax 137790000 97889000Fringe Benefi t tax - 2342000Deferred tax 320039 127326

138110039 100358326Profi t after tax 265900884 184841735 Balance brought forward 239831152 102738167 Balance available for appropriation 505732036 287579902 Transfer to General Reserve 27000000 18500000 Dividend

Interim - - Proposed 40000000 25000000

Tax on DividendInterim - - Proposed 6798000 4248750

Balance carried to Balance Sheet 431934036 239831152 Earning Per Share (Equity shares, face value Rs.10/- each) 3286.38 2284.54

- Basic and Diluted - Non annualised

For Satish K. Aggarwal & Co.Chartered Accountants For & On Behalf of the Board of Directors

(Pranav Aggarwal) (S P Singh) (A K Singhal) (R S Sharma)Partner Chief Executive Offi cer Director Chairman Place: New DelhiDated: 7th May, 2010

Accounting Policies

1. BASIS OF PREPARATION

The fi nancial statements are prepared on accrual basis of accounting under

historical cost convention in accordance with generally accepted accounting

principles in India and the relevant provisions of the Companies Act, 1956

including accounting standards notifi ed there under.

2. USE OF ESTIMATES

The preparation of fi nancial statements requires estimates and assumptions that

affect the reported amount of assets, liabilities, revenue and expenses during

the reporting period. Although such estimates and assumptions are made on

a reasonable and prudent basis taking into account all available information,

actual results could differ from these estimates & assumptions and such

differences are recognized in the period in which the results are crystallized.

3. FIXED ASSETS

3.1 Fixed Assets are carried at historical cost less accumulated depreciation.

3.2 Intangible assets are stated at their cost of acquisition less accumulated

amortisation.

4. INVESTMENTS

4.1 Long term investments are carried at cost. Provision is made for

diminution, other than temporary, in the value of such investments.

5. PROFIT AND LOSS ACCOUNT

5.1 INCOME RECOGNITION

5.1.1 Income from consultancy services is accounted for on the basis of actual

progress / technical assessment of work executed, in line with the terms

of respective consultancy contracts.

5.1.2 Claims for reimbursement of expenditure are recognised as other

income, as per the terms of consultancy service contracts.

5.1.3 Interest / surcharge recoverable on advances to suppliers as well as

warranty claims / liquidated damages wherever there is uncertainty of

realization / acceptance are not treated as accrued and are therefore

accounted for on receipt / acceptance.

5.2 EXPENDITURE

5.2.1 Depreciation is charged on straight line method at the rates specifi ed

in Schedule XIV of the Companies Act, 1956 except for the following

assets at the rates mentioned below:

a Personal Computers and Laptops including peripherals 19%

b Photocopiers and Fax Machines 19%

c Air-conditioners, Water Coolers and Refrigerators 8%

5.2.2 Depreciation on additions to/deductions from fi xed assets during the

year is charged on pro-rata basis from/up to the month in which the

asset is available for use/disposal.

5.2.3 Assets costing up to Rs. 5,000/- are fully depreciated in the year of acquisition.

5.2.4 Cost of software recognized as intangible assets is amortised on straight

line method over a period of legal right to use or 3 years, whichever is earlier.

5.2.5 Where the cost of depreciable assets has undergone a change during

the year due to increase/decrease in long term liabilities on account of

exchange fl uctuation, price adjustment, change in duties or similar factors,

the unamortised balance of such asset is charged prospectively over the

residual life determined on the basis of the rate of depreciation.

5.2.6 Expenses on ex-gratia payments under voluntary retirement scheme and

training and recruitment are charged to revenue in the year of incurrence.

5.2.7 The liabilities towards employee benefi ts are ascertained by the Holding

Company i.e. NTPC Limited on actuarial valuation. The company provides

for such employee benefi ts as apportioned by the Holding Company.

5.2.8 Preliminary expenses on account of new projects incurred prior to

approval of feasibility report are charged to revenue.

5.2.9 Pre-paid expenses and prior period expenses/income of items of Rs.

1,00,000/- and below are charged to natural heads of accounts.

6. PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognised when the company has a present obligation as a

result of a past event and it is probable that an outfl ow of resources will be

required to settle the obligation and in respect of which a reliable estimate can

be made. Provisions are determined based on management estimate required

to settle the obligation at the balance sheet date and are not discounted to

present value. Contingent liabilities are disclosed on the basis of judgment of

the management/independent experts. These are reviewed at each balance

sheet date and are adjusted to refl ect the current management estimate.

7. CASH FLOW STATEMENT

Cash fl ow statement is prepared in accordance with the indirect method

prescribed in Accounting Standard (AS) 3 on ‘Cash Flow Statements’.


NTPC ELECTRIC SUPPLY COMPANY LIMITEDSchedule 1CAPITAL Rs.

31.03.2010 31.03.2009Authorised10,000,000 equity shares of Rs. 10/- each

(Previous year 10,000,000 equity shares of

Rs. 10/- each) 100000000 100000000Issued, Subscribed and Paid-Up80,910 equity shares of Rs. 10/- each (Previous

year 80,910 equity shares of Rs. 10/- each) are

held by the holding company, NTPC Ltd. and

its nominees. 809100 809100

Schedule 9

CURRENT LIABILITIES

Rs.

31.03.2010 31.03.2009

Sundry Creditors

For goods and services

Other than Micro & Small Enterprises 91656160 36851039

Book overdraft 79426112 449993741

Deposits, retention money from contractors

and others 1484088 855973

172566360 487700753

Advances from customers and others 587112819 344936498

Other liabilities 38665738 63957020

Amount received against deposit works 10076776688 5041417985

Amount payable to NTPC Ltd. 86847543 128711143

Total 10961969147 6066723399

Schedule 10

PROVISIONS

Income/Fringe Benefi t tax

As per last Balance Sheet - 89420209

Additions during the year 137790000 100231000

Amount adjusted during the year (183845694) (6586)

Less: Set off against taxes paid 321635694 189657795

- -

Proposed Dividend

As per last Balance Sheet 25000000 17500000


Amounts used during the year 25000000 17500000

40000000 25000000

Tax on Proposed Dividend




6798000 4248750

Employee benefi ts


Additions during the year - 8311191

Amounts used/reversed during the year 14740477 5648026

3811992 18552469

Others

As per last Balance Sheet - -

Additions during the year 45458 -

Amounts used during the year - -

45458 -

Total 50655450 47801219

Schedule 2RESERVES AND SURPLUS

Rs.31.03.2010 31.03.2009

General ReserveAs per last Balance Sheet 34100000 15600000 Less: Adjustment during the year - -

34100000 15600000 Add: Transfer from Profi t & Loss Account 27000000 18500000

61100000 34100000 Surplus, balance in Profi t & Loss Account 431934036 239831152

Total 493034036 273931152

Schedule 3 FIXED ASSETS Rs.

GROSS BLOCK DEPRECIATION NET BLOCKAs at

01.04.2009 AdditionsDeductions /Adjustments

As at31.03.2010

As at01.04.2009

For theyear

Deductions /Adjustments

Up to31.03.2010

As at31.03.2010

As at31.03.2009

TANGIBLE ASSETSTemporary erection 190549 - - 190549 47637 142912 - 190549 - 142912Furniture, fi xtures & other offi ce equipment 7763088 2463728 (188731) 10415547 2222896 1282958 (91208) 3597062 6818486 5540192EDP & WP machines 4599563 2683116 - 7282679 1152015 1352873 - 2504888 4777791 3447548INTANGIBLE ASSETSSoftware 936895 - - 936895 740676 134539 - 875215 61680 196219Total 13490095 5146844 (188731) 18825670 4163224 2913281 (91208) 7167713 11657957 9326871

Previous period 8650782 5539422 700109 13490095 2348668 2091683 277127 4163224 9326871 6302114

Schedule 4INVESTMENTS(Valuation as per Accounting Policy No. 4) Rs.

Number

of shares

Current Year

/ (Previous

Year)

Face value

per share

Current Year

/ (Previous

Year) (Rs.)

31.03.2010 31.03.2009

LONG TERMUnquoted (fully paid-up)Equity Shares in Joint

Venture Companies:KINESCO Power and Utilities

Private Ltd.

50000

( - )

10

( - ) 500000 - Share application money

pending allotment in:KINESCO Power and Utilities Private Ltd. 2600000 500000 Total 3100000 500000

Schedule 5SUNDRY DEBTORS(Considered good, unless otherwise stated)Debts outstanding over six months

Unsecured 107199668 119435951Other debts

Unsecured 99158449 52704090Total 206358117 172140041

Schedule 6CASH AND BANK BALANCESBalances with scheduled banks Term Deposit Account 11036983283 6044154479Total 11036983283 6044154479

Schedule 7OTHER CURRENT ASSETSInterest accrued on short term deposits with

Indian banks

102348186 30453786

Other recoverables 16167257 12193883Total 118515443 42647669

Schedule 8LOANS & ADVANCES(Considered good, unless otherwise stated)ADVANCESOthers

Unsecured 1763411 1121879 CENVAT recoverable

Unsecured 6435249 469333 DEPOSITSAdvance tax & tax deducted at source 443915391 308867777 Less: Provision for taxation 321635694 189657795

122279697 119209982

Total 130478356 120801194


Schedule 11 Rs.

CONTINGENT LIABILITIES 31.03.2010 31.03.2009

Claims against the Company not

acknowledged as debt in respect of:

Others 105628893 1275357

Total 105628893 1275357

Possible reimbursement Rs. Nil

(Previous period Rs. Nil)

Schedule 12 Current Year Previous Year

SALES

Consultancy, project management and

supervision fees 757563215 717262863

Total 757563215 717262863

Schedule 13

OTHER INCOME

Reimbursables billed to

clients 216036 6673406

Interest from Indian Banks

(Gross) (Tax deducted

at source Rs. 57485910,

Previous period

Rs. 58889151) 399113336 259646931

Less: Transferred to amount

received against deposit

works - Schedule 9 357311726 198759407

41801610 60887524

Total 42017646 67560930

Schedule 14

EMPLOYEES’ REMUNERATION AND BENEFITS

Salaries, wages, bonus, allowances & benefi ts 225805546 186715768

Contribution to provident and other funds 25156602 19199084

Welfare expenses 12695007 26747834

Total 263657155 232662686

Schedule 15

ADMINISTRATION AND OTHER EXPENSES

Power charges 471463 486856

Rent 4428865 3412429

Repairs and maintenance

Building - 40470

Others 37921986 10828872

37921986 10869342

Insurance 27752 67434

Training and

recruitment expenses 108550 99151

Communication expenses 3583358 2630320

Traveling expenses 29422319 24135420

Tender expenses 200915 7043098

Less: Receipt from sale of tenders 13546 4414500

187369 2628598

Payment to Auditors 120291 109508

Advertisement & publicity 277000 -

Entertainment expenses 1413419 599108

Expenses for transit camp 694346 1208821

Brokerage & commission 33000 22500

Books and periodicals 111139 42308

Professional charges &

consultancy fees 35093276 206014050

Legal expenses - 12142

EDP hire and other charges 971672 556173

Printing and stationary 1010304 454423

Expenses on hiring of vehicles 17248251 8059830

Miscellaneous expenses 2982301 3447120

Total 136106657 264855533

Schedule 16

PROVISIONS

Others 45458 -

Total 45458 -

Schedule 17 Rs.

INTEREST AND FINANCE CHARGES Current Year Previous Year

Interest on:

Others 3908 -

Finance Charges:

Bank charges 58335 13830

Total 62243 13830

Schedule 18

PRIOR PERIOD INCOME/EXPENDITURE (NET)

INCOME - -

EXPENDITURE

Salary, wages, bonus, allownaces & benefi ts (7198232) -

Depreciation (16623) -

Total (7214855) -

Schedule - 19NOTES ON ACCOUNTS1) The Company is operating in a single segment, that is providing consultancy,

project management and supervision services.

2) Earning per share:

The elements considered for calculation of Earning Per Share (Basic & Diluted)

are as under:

Current Year Previous Year

Net Profi t after Tax used as numerator (Rupees) 26,59,00,884 18,48,41,735

Weighted average number of equity shares used

as denominator80,910 80,910

Earning per share (Rupees) – Basic & Diluted 3,286.38 2,284.54

Face value per share (Rupees) 10.00 10.00

3) Disclosure regarding Operating Leases:

The company’s signifi cant leasing arrangements are in respect of operating

leases of premises for residential use of employees, offi ces and transit camps.

These leasing arrangements are usually renewable on mutually agreed terms but

are not non-cancellable. Schedule 14 - Employees’ remuneration and benefi ts

include Rs. 1,93,54,842 (Previous year Rs. 99,58,151) towards lease payments,

net of recoveries, in respect of premises for residential use of employees.

Lease payments in respect of premises for offi ces and transit camps are shown

as Rent in Schedule 15 - Administration and other expenses.

4) The item-wise details of deferred tax liability (net) are as under: Rs.

31.03.2010 31.03.2009

Deferred tax liability

i) Difference of book depreciation and tax

depreciation

ii) Provisions disallowed for tax purposes

Less: Deferred tax assets

i) Provisions disallowed for tax purposes

6,09,971 15,452

-

3,05,384

-

-

Deferred Tax Liability (Net) 6,25,423 3,05,384

The net increase in the deferred tax liability of Rs. 3,20,039 (Previous year

decrease Rs. 1,27,326) has been debited to Profi t and Loss Account.

5) All the employees of the Company are on secondment from the Holding

Company, i.e. NTPC Ltd.

6) Employees’ remuneration and benefi ts include Rs. 1,63,37,914 (Previous year

Rs. 2,05,04,062) in respect of gratuity, leave encashment, post retirement

medical benefi ts, transfer traveling allowance on retirement/death, long service

awards to employees, farewell gift on retirement and economic rehabilitation

scheme as apportioned by the Holding Company i.e. NTPC Limited on actuarial

valuation at the year end.

7) Employees’ remuneration and benefi ts include Rs. 23,15,020 (Previous year Rs.

11,86,501) towards tax liability on housing perquisites of employees borne by

the company as per the decision of the Holding Company i.e. NTPC Limited.

8) The common services being utilized by the Company for it’s’ offi ce at

NOIDA are provided without any charges by the Holding Company.

9) Wherever percentage completion basis is adopted for determining income

from consultancy contracts, technical estimates of the percentage of

completion and project costs have been considered.

10) Payment to the Statutory Auditors (Schedule 15) Rs.


Audit Fees 72,500 50,000

Tax audit Fees 21,000 17,500

Certifi cation Fees - 12,500

Reimbursements - Traveling Expenses

- Service Tax

17,160

9,631

21,010

8,498

1,20,291 1,09,508


11) Estimated amount of contracts remaining to be executed on capital account

and not provided for is Rs. Nil (Previous year Rs. 35,04,401).

12) Managerial remuneration paid/payable to Chief Executive Offi cer:

Rs.

Current Period Previous Period

Salaries and allowances 24,98,958 13,07,902

Contribution to provident fund & other

funds including gratuity & group insurance 2,72,220 1,10,366

Other benefi ts 1,58,618 1,45,851

In addition to the above remuneration, the Chief Executive Offi cer has been

allowed the use of staff car, including for private journeys, on payment of Rs.

780 per month, as contained in the Ministry of Finance (BPE) Circular No.2 (18)/

pc/64 dt.29.11.64, as amended.

The provisions for / contribution to gratuity, leave encashment and post-

retirement medical facilities are ascertained on actuarial valuation done by the

Holding Company i.e. NTPC Limited and apportioned on overall basis and

hence not ascertainable separately.

13) Previous year’s fi gures have been regrouped/rearranged wherever necessary.

14) Information pursuant to Part IV of Schedule VI of the Companies Act, 1956

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSSINESS PROFILE

I. Registration Details State Code : 0 5 5

Registration No. U 4 0 1 0 8 D L 2 0 0 2 G O I 1 1 6 6 3 5

Date Month Year

Balance-Sheet date 3 1 0 3 2 0 1 0

II. Capital Raised during the year (Amount in Rs.Thousands)

Public Issue Right issue

N I L N I L

Bonus Issue Private Placement

N I L N I L

III.Position of Mobilization and Deployment of funds (Amount in Rs. Thousands)

Total Liability Total Assets

1 1 5 0 7 0 9 3 1 1 5 0 7 0 9 3

Source of Funds

Paid-up Capital Reserves & Surplus

8 0 9 4 9 3 0 3 4

Secured Loans Unsecured Loans

N I L N I L

Deferred Tax Liability

6 2 5

Application of Funds

Net Fixed Assets Investment

1 1 6 5 8 3 1 0 0

Net Current Assets Deferred Tax Asset

4 7 9 7 1 0 N I L

Misc. Expenditure Accumulated Losses

N I L N I L

IV.Performance of Company(Amount in Rs. Thousands)

Turnover (Including Other Income) Total Expenditure

7 5 7 5 6 3 4 0 2 7 8 5

Profi t before Tax Profi t after Tax

4 0 4 0 1 1 2 6 5 9 0 1

Earning per share in Rs. Dividend Rate%

3 2 8 6 . 3 8 4 9 4 3 . 7 6

V. Generic Name of three Principal Product/Services of Company

(As per monetary terms)

Item Code No. N A

(ITC Code)

Product Description: C o n s u l t a n c y S e r v i c e s

For Satish K. Aggarwal & Co. For and on behalf of Board of Directors

Chartered Accountants

(Pranav Aggarwal) (S P Singh) (A K Singhal) (R S Sharma)

Partner Chief Executive Offi cer Director Chairman

Place: New Delhi

Dated: 7th May, 2010

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2010

Rs.


A.CASH FLOW FROM OPERATING ACTIVITIES

Net Profi t/(Loss) before tax and Prior Period Adjustments 396796068 285200061

Adjustment for:

Depreciation 2913281 2091683

Provisions 45458 -

Interest Received (41801610) (60887524)

Prior period adjustments (net) 7214855 -

Operating Profi t before Working Capital Changes 365168052 226404220

Adjustment for:

Trade & Other Receivables (34218076) (91038832)

Trade Payables & Other Liabilities 4880505271 3997144688

Other Current Assets (3973374) (11392181)

Loans & Advances (6607448) 4835706374 185871788

Cash generated from operations 5200874426 4306989684

Direct Taxes Paid 140859715 213472518

Net Cash from Operating Activities - A 5060014711 4093517166

B.CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (5244367) (5116440)

Interest Received (30092790) 30637366

Investment in Joint Venture (2600000) (500000)

Net cash fl ow from Investing Activities - B (37937157) 25020926

C.CASH FLOW FROM FINANCING ACTIVITIES

Dividend Paid (25000000) (17500000)

Tax on Dividend (4248750) (2974125)

Net Cash fl ow from Financing Activities - C (29248750) (20474125)

D.OTHERS - -

Net Increase/Decrease in Cash & Cash equivalents (A + B + C + D) 4992828804 4098063967

Cash & cash equivalents (Opening balance) 6044154479 1946090513

Cash & cash equivalents (Closing balance) 11036983283 6044154479

Notes: Cash & Cash equivalents consist of Cash in Hand and Balance with Banks.

Previous period’s fi gures have been regrouped/rearranged wherever necessary.

For & On Behalf of the Board of Directors

As per our report of even date

For Satish K. Aggarwal & Co.


(Pranav Aggarwal) (S P Singh) (A K Singhal) (R S Sharma)

Partner Chief Executive Offi cer Director Chairman

Place: New Delhi


AUDITORS’ REPORT

To the Members of

NTPC ELECTRIC SUPPLY COMPANY LTD.

1. We have audited the attached Balance Sheet fo NTPC Electric Supply Company Ltd. (a wholly owned subsidiary of NTPC Ltd.) as at 31st March, 2010, the Profi t and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These fi nancial statements are the responsibility of the company’s managment. Our responsibility is to express an opinion on these fi nancial statements based on our audit.

2. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit


to obtain reasonable assurance about whether the fi nancial statements are free from material misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by the management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a resonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 (as amended) issued by the Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specifi ed in paragraphs 4 and 5 of the said Order.

4. We would draw attention to:

Note no. 9 of schedule 19 to fi nancial statements in respect of income recognition, technical estimates of percentage of completion and project costs have been certifi ed by the management and hence relied upon by us.

5. Further to our comments in annexure referred to in para 3 above, we report that:

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(c) The Balance Sheet, Profi t and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Profi t and Loss Account and Cash FlowStatement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

(e) Being a Government company, pursuant to the Notifi cation No. GSR 829(E) dated 17.07.2003 issued by Government of India, provisions of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956, are not applicable to the company;

(f) In our opinion, and according to the best of our information and according to the explanations given to us, the said accounts read with the Accounting Policies and Notes thereon in Schedule 19, give the information required by the Companies Act, 1956 in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of Balance Sheet, of the state of affairs of the company as at 31st March 2010,

b. in the case of Profi t and Loss Account, of the profi t for the year ended on that date, and

c. in the case of Cash Flow statement, of the cash fl ows for the year ended on that date.

For Satish K. Aggarwal & Co.Chartered Accountants

(Pranav Aggarwal)Place: New Delhi PartnerDate : 7th May, 2010 Membership No.: 511914

ANNEXURE TO THE AUDITORS’ REPORT

Referred to in paragraph 3 of our report of even date.

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fi xed assets.

(b) Physical verifi cation of fi xed assets has been carried out by an internal commitee, appointed for the purpose, which is in our opinion is considered reasonable having regard to the size and nature of its assets. No material discrepancies were noticed on such verifi cation.

(c) No fi xed assets have been disposed off during the year.

(ii) (a) The company does not have inventory.

Accordingly, the provisions of clause 4(ii) (b) & (c) of the Companies (Auditors’ Report) Order, 2003 are not applicable to the company.

(iii) (a) The Company has not granted any loans secured or unsecured to any company, fi rm or other party covered in the register maintained under section 301 of the Companies Act 1956. In view of (iii) (a) above, the clauses (iii) (b), (iii) (c) and (iii) (d) are not applicable.

(e) The Company has not taken any loans secured or unsecured from any company, fi rm or other party covered in the register maintained under section 301 of the Companies Act 1956. In view of (iii) (e) above, the clauses (iii) (f) and (iii) (g) are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and nature of its business for purchase of fi xed assets and for sale of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems.

(v) (a) The company has not carried out any transactions required to be entered in the register maintained under section 301 of the Companies Act 1956.

(b) In view of clause (v) (a) above, the clause (v) (b) is not applicable.

(vi) The Company has not accepted deposits from the public.

(vii) The provisions of the Order related to internal audit are not applicable to the company as the paid up capital plus reserves of the company are less than Rs. 50 lac at the commencement of the year under audit and the average annual turnover for the three consecutive fi nancial years immediately preceding the year under audit being less than Rs. 5 crore. However, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

(viii) The maintenance of cost records under section 209(1) (d) of the Companies Act 1956 is not applicable to the company, as the company has not commenced any activities related to distribution of electricity.

(ix) (a) Undisputed statutory dues including income tax, sales tax, wealth tax, service tax, excise duty, custom duty, cess and other statutory dues have generally been regularly deposited with the appropriate authorities. The provisions related to provident fund, investor education and protection fund and employees’ state insurance etc. along with the related provisions of clause (ix) (b) are not applicable to the company.

(b) According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess, which have not been deposited on account of any dispute.

(x) The company has no accumulated losses and has not incurred cash losses during the fi nancial year covered by our audit and the immediately preceding fi nancial year.

(xi) Not applicable as the company has not taken any loans from any fi nancial institution, bank or by way of issue of debentures.

(xii) The company has not granted any loans or advances.

(xiii) The company is not a chit fund or a nidhi / mutual benefi t fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

(xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

(xv) The company has not given any guarantees for loans taken by others from banks or fi nancial institutions.

(xvi) The company has not raised any term loans.

(xvii) The company has not raised any short term or long-term funds.

(xviii) The company has not made preferential allotment of shares to companies, fi rms or other parties listed in the registers maintained under Section 301 of the Companies Act, 1956.

(xix) The company has not issued any debentures.

(xx) The company has not raised money through a public issue.

(xxi) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For Satish K. Aggarwal & Co.Chartered Accountants

(Pranav Aggarwal)Place: New Delhi PartnerDate : 7th May, 2010 Membership No.: 511914

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 619 (4) OF THE COMPANIES ACT, 1956, ON THE ACCOUNTS OF NTPC

ELECTRIC SUPPLY COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2010.

The preparation of fi nancial statements of NTPC Electric Supply Company Limited, New Delhi, for the year ended 31 March 2010 in accordance with the fi nancial reporting framework prescribed under the Companies Act, 1956, is the responsibility of the management of the Company. The statutory auditors appointed by the Comptroller and Auditors General of India under Section 619(2) of the Companies Act, 1956, are responsible for expressing opinion on these fi nancial statements under Section 227 of the Companies Act, 1956, based on independent audit in accordance with the auditing and assurance standards prescribed by their professional body the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 07 May 2010.

I, on behalf of the Comptroller and Auditors General of India, have decided not to

review the report of the statutory auditors’ on the accounts of NTPC Electric Supply

Company Limited, New Delhi for the year ended 31 March 2010 and as such have no comments to make under Section 619(4) of the Companies Act, 1956.

Place: New Delhi


For and on behalf of the

Comptroller & Auditor General of India

(M. K. Biswas)

Principal Director of Commercial Audit and

Ex-offi cio Member Audit Board-III, New Delhi


NTPC HYDRO LIMITED(A wholly-owned subsidiary of NTPC Limited)

DIRECTORS’ REPORT

To

The Members,

Your Directors have pleasure in presenting their 8th Annual Report on the performance

of the Company for the fi nancial year ended 31st March, 2010 together with the

Audited Accounts and Auditors’ Report thereon.

OPERATIONAL REVIEW

Your Company is presently executing two projects namely, Lata Tapovan Hydro

Electric Project (171 MW), located in Chamoli District of Uttarakhand and Rammam

Hydro Electric Project, Stage – III (120 MW) located in Darjeeling District of West

Bengal and West Sikkim District of Sikkim.

Lata Tapovan HEP is being developed as a regional power station with 12% free

power to the State of Uttarakhand. In respect of Lata Tapovan HEP, all requisite

statutory clearances have been obtained and physical possession of land required

for the project has also been obtained.

Rammam HEP, Stage – III, is being developed for the benefi t of West Bengal and

Sikkim. An interstate agreement between West Bengal and Sikkim in this regard have

been signed. All requisite statutory clearances and physical possession of land has

been obtained.

Both the projects have been planned for implementation through EPC routes and

the EPC packages are under various stages of bidding. These projects are slated for

commissioning during 12th Plan period.

FINANCIAL REVIEW

The fi nancial highlights of the Company are as under: (Rs. in Crore)

Particulars F/Y 2009-10 F/Y 2008-09

Paid-up Share Capital 100.80 92.43

Share Capital Deposit – Pending Allotment 1.75 0.30

Net Block 22.42 7.72

Capital Work in progress 68.34 61.13

Construction Stores & Advances 7.20 15.76

Expenditure transferred to EDC 7.76 7.89

MANAGEMENT DISCUSSION & ANALYSIS

Management Discussion analysis report for the year under review as stipulated

under the provisions of the DPE Guideline on Corporate Governance is enclosed

as Annexure-I.

FIXED DEPOSITS


31st March 2010.

AUDITORS’ REPORT

The Comptroller and Auditor General of India (C& AG) vide letter dated 21st August

2009 had appointed M/S K. Prasad & Company, Chartered Accountants as Statutory

Auditor of the Company for the fi nancial year 2009-10. M/S K. Prasad & Company had

conducted statutory audit of the books of accounts for the fi nancial year 2009-10

and there is no adverse comment, observation or reservation in the Auditors’ Report

on the accounts of the Company.

COMPTROLLERS & AUDITOR GENERAL REVIEW

The Comptroller & Auditor General of India (C&AG) vide its letter dated 11th May

2010 have communicated that C&AG have decided not to review the report of

the Statutory Auditors on the accounts of the Company for the year ended 31st

March, 2010 and as such have no comments to make under Section 619 (4) of the

Companies Act, 1956. Copy of the letter received from C&AG is enclosed as an

annexure to the report of the Statutory Auditors.

AUDIT COMMITTEE

As per the provisions of Section 292A of the Companies Act 1956, your Company

has constituted an Audit Committee of the Board of Directors. As on 31st March, 2010

the members of Audit Committee were as follows:

1. Shri A.K. Singhal, Director

2. Shri R.C.Shrivastav, Director

3. Shri B.P.Singh, Director

Consequent upon superannuation from the services of NTPC, Shri R.C.Shrivastav

ceased to be member of the audit Committee w.e.f. 30th June, 2010 (A/N). In

exercise of powers conferred under the Articles of Association, NTPC Limited has

appointed Shri D.K.Jain as Director of the Company w.e.f. 7th July, 2010. During the

year under review two meetings of the Audit Committee were held on 13th May,

2009 and 4th November, 2009 respectively.


Particulars of employees as required under the provisions of Section 217(2A) of

Companies Act, 1956 read with the Companies (Particulars of Employees) Rules,

1975 are enclosed as Annexure-II.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING & OUTGO

Since the projects undertaken by the Company are in implementation stages,

there are no signifi cant particulars, relating to conservation of energy & technology

absorption as required to be given under the Companies (Disclosure of Particulars in

the Report of Board of Directors) Rule, 1988.

During the period under review, there was no earning or expenditure in foreign currency.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act 1956, your Directors confi rm

that:

1. in the preparation of the Annual Accounts for the fi nancial year ended 31st

March 2010, the applicable accounting standards have been followed

alongwith proper explanation relating to material departures;

2. the Directors have selected such accounting policies and applied them

consistently , and made judgments and estimates that are reasonable and


as at 31st March 2010 and of the loss of the company for the said period;

3. the Directors had taken proper and suffi cient care for the maintenance of




4. the Directors had prepared the annual accounts for the fi nancial year ended

31st March 2010, on going concern basis.

BOARD OF DIRCETORS

Consequent upon superannuation from the services of NTPC Limited, Shri K.B.Dubey

and Shri R.C.Shrivastav ceased to be the Director of the Company w.e.f. 31st July,

2009 and 30th June, 2010 respectively. Your Board places on record its deep

appreciation for the invaluable contribution made by them during his tenure. In

exercise of powers conferred under Article 101 of the Articles of Association of the

Company, NTPC Limited i.e. holding Company has appointed Shri B.P.Singh, Director

(Projects), NTPC and Shri D.K.Jain Director (Technical), NTPC as Directors on the

Board of your Company w.e.f. 10th August 2009 and 7th July 2010 respectively. In

terms of Section 260 of the Companies Act, 1956, Shri B.P.Singh and Shri D.K.Jain will

hold offi ce only upto the date of ensuing Annual General Meeting. The Company has

received requisite notice in writing from a member of the Company proposing their

candidature for the offi ce of Director liable to retire by rotation.

As per the provisions of the Companies Act, 1956, Shri A.K.Singhal, Director shall

retire by rotation at the ensuing Annual General Meeting of the Company and being

eligible offers himself for re-appointment.

ACKNOWLEDGEMENT

The Board of Directors wishes to place on record its appreciation for the support

and co-operation extended by the NTPC Limited, the holding Company, Ministry of

Power & other agencies of Govt. of India, Govt. of Uttrakhand, Govt. of West Bengal,

Govt. of Sikkim, Auditors, Bankers and employees of the Company.


Place:New Delhi (R.S.Sharma)

Dated: 14/07/2010 Chairman

ANNEXURE-I

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

I. INDUSTRY STRUCTURE AND DEVELOPMENT

Availability of Power is one of the most important factors for the growth of any

economy. The availability of adequate and reliable Power at the affordable price is

one of the determinants of the higher and improved standards of living.

As on 31st March, 2010, the total installed capacity in India was 159398.49 MW out

of which, share of Thermal, Hydro, Nuclear and Renewable energy sources were

102453.98 MW (64.3%), 36863.40 MW (23.1%) and 4560 MW (2.86%) and 15521.11

MW (9.7%) respectively.

Hydro Power is our richest renewable and environmentally benign source of energy

capable of providing clean and environmental friendly energy at affordable price,

however, during the last few years the share of hydro in the total installed capacity

has gradually declined.

As per the assessment of CEA, the country is endowed with hydro potential of

approx. 150000 MW installed capacity. To meet the all India peak demand and

energy requirements at the end of 12th Plan period, a capacity addition of more

than 90000 MW has been proposed to be added during the 12th Plan period (2012-

2017) which includes 30000 MW through Hydro Power.

II. STRENGTHS

Your company is presently executing two projects namely, Lata Tapovan Hydro

Electric Project (171 MW), located in Chamoli District of Uttarakhand and Rammam

Hydro Electric Project, Stage – III (120 MW) located in Darjeeling District of West

Bengal and West Sikkim District of Sikkim. Your Company has received all statutory


clearances in respect of both the projects and infrastructure development activities

are presently being carried out.

Strong design and engineering support

Your Company is a wholly owned subsidiary of NTPC Limited. NTPC has installed

capacity of nearly 32000 MW. Currently, 17830 MW capacity is under construction

by NTPC out of which 1920 MW is of Hydro Electric Projects. With a view to take

advantage of expertise of NTPC in engineering, design, contractual and other

technical issues, your company has entered into working arrangement with NTPC

Limited under which all pre and post award engineering as well as processing and

award of EPC packages in respect of Lata Tapovan HEP and Rammam HEP (Stage-III)

will be done by NTPC.

Power Purchase Agreements with customers

Your company has entered in to Power Purchase Agreements, for Lata Tapovan

HEPP, with North Delhi Power Ltd, BSES Yamuna Power Ltd, BSES Rajdhani Power

Ltd, Dakshin Haryana Bijlee Vitran Nigam Ltd, Uttar Haryana Bijlee Vitran Ltd, Jaipur

Vidyut Vitran Ltd, Ajmer Vidyut Vitran Nigam Ltd and Jodhpur Vidyut Vitran Nigam

Ltd.. The Power Purchase Agreements provide for opening of Letter of Credit, Default

Escrow Arrangement and fi rst charge on the Incremental receivables with a view to

secure realization of payment. Power Purchase Agreement for Rammam HPP is under

discussion with concerned benefi ciary.

III. Opportunities

Hydro power Projects not only generates clean energy but also provides

drinking water supply, irrigation, increased employment opportunities, industrial

development etc. to the region. The Government of India has accorded a high

priority to the development of Hydro Potential in the country and in recent years

Government has taken a number of policy initiatives to address the issues impending

the development of Hydro Power. Both projects of your company are slated for

commissioning during the 12th Plan period.

IV. Outlook

As per the re-assessment studies completed by Central Electricity Authority in the

year 1987, the Hydro power potential at 60% load factor, had been estimated at

84,000 MW. This potential when fully developed would result in installed capacity

of about 1,50,000 MW. At present, installed Hydro Power Capacity of the Country is

36,863.40 MW only. Therefore, there is huge potential in the areas of Hydro Power

which are yet to be harnessed. Various reforms and initiatives like enactment of

Electricity Act, 2003, ranking study of potential hydro sites by CEA in 2001, 50000

MW Hydro initiative , National Water Policy-2005 etc. have been taken by the

Government of India to accelerate development of Hydro Power in the Country.

Further, the cabinet in January 2008 had approved a New Hydro Policy-2008 with a

view to address various problems which have impeded the development of Hydro

Power from time to time.

V. Risk & Concerns/Weakness/ Threats

Environmental & Forest Clearance, lack of infrastructure facilities like roads &

construction power, issues relating to land acquisition and R&R, apportionment of

catchment area treatment among various benefi ciaries, net present value and its

upfront payment for assessing the cost of forest diversion etc. are some of the areas

of concern which has marred development of Hydro Power in the Country. Hydro

Projects are highly capital intensive and have long gestation periods.

VI. Internal Control System

Your Company has adequate Internal Control system at its projects and administrative

offi ces. Your Company is following defi ned Scheme of Delegation of Power for its

employees. In order to ensure that all checks and balances and internal controls are

in order, internal audit of all projects and administrative offi ces are carried out by

independent fi rms of Chartered Accountants and fi ndings of Internal Auditors are

placed before the Audit Committee of the Board. Further, being a wholly owned

subsidiary of NTPC, the internal control mechanism of the Company is also subject to

review periodically by the Internal Audit Department of the NTPC.

VII. Financial Performance

During the fi nancial year Paid-up share Capital of the Company has increased from

Rs. 92.42 Crore to Rs. 100.80 Crore. There is an addition of Rs.14.70 Crore in net

block of assets. The Capital work in progress has increased by Rs. 7.21Crore and

after acquisition of land at Rammam, construction stores & advances has decreased

by Rs. 8.56 Crore.

The projects undertaken by the Company are in construction stage, therefore all

the administrative expenditures of the Company are transferred to Capital work-in-

progress.

VIII. Human Resource

At present, 23 executives are posted in the Company and all employees are on

secondment basis from NTPC Limited. Company has adequate number of employees

in different functional areas to take care of activities of the Company.

Development of Human resource by imparting Training is a continuous process.

In your Company, there is a policy of imparting minimum 7 days training in a year.

Training programs are generally conducted in association with Power Management

Institute, one of the leading training institute in Power Sector.

IX. Environment Protection

As a responsible corporate citizen, your Company is committed for protection of

environment and ecological balance in areas around the project. Both projects

undertaken by the Company have received environment clearances from the Ministry

of Environment & Forests. The Company has made all payments, which were required

to be made for compensatory afforestation to the State Governments.

X. CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis, describing objectives,

projections and estimates, are forward-looking statements and progressive, within

the meaning of applicable security laws and regulations. Actual results may vary from

those expressed or implied, depending upon economic condition, Government

policies and other incidental/ related factors.


Place: New Delhi (R.S.Sharma)


ANNEXURE-II

PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956 WHOSE REMUNERATION EXCEEDED RS. 24,00,000/- PER ANNUM FOR THE

WHOLE YEAR

Sl.

NO

NAME (Surname First & in Alphabetical order)

EMP.

NO.

DESIGNATION & NATURE OF DUTIES

REMUNERATION ( IN RUPEES)

QUALIFICATION EXPERIENCE (Yrs)

Date of Commencement of employment

AGE LAST

EMPLOYMENT

HELD

REMARKS

1 AGGARWAL, A.K. 070210 DGM - ENGG. 2844703 BE (CIVIL) 33 29.12.83 54 SIMPLEX CONCRETE

PILES

2 HAQ, S.M 040283 DGM - CIVIL CONST 2594449 B.SC(ENGG)

- CIVIL

33 12.10.81 58 NORTH EASTERN

ELECTRIC POWER

3 KHETARPAL,

RAKESH

000342 CEO - 2649615 BE(CIVIL), ME,

MBA

33 09.03.79 57 UTTAR PRADESH

IRRIGATION DEPTT

4 MONDAL, K.R 041634’ DGM - C& M 2821183 B.TECH(MECH),

PGDPM

26 30.04.88 51 ASSOCIATED

CEMENT COMPANY

5 PRADHAN,

VIJAY KUMAR

001322 AGM - PROJECT 2660210 B.SC(ENGG)

- CIVIL

29 30.11.81 53

6 SINHA, MANOJ 020431 DGM - C & M 2567672 B.TECH (ELECT) 25 01.02.88 46 LOHIA MACHINES


Place: New Delhi (R.S.Sharma)



NTPC HYDRO LIMITEDBALANCE SHEET AS AT 31ST MARCH, 2010

Rs.SCHEDULE

NO.

As at31.03.2010

As at

31.03.2009SOURCES OF FUNDS Share Capital 1 1,007,990,400 924,262,000 Share Capital Deposit-Pending

Allotment

17,500,000 3,000,000

Total 1,025,490,400 927,262,000 APPLICATION OF FUNDS FIXED ASSETS Gross Block 2 229,738,740 81,494,996 Less: Depreciation 5,557,631 4,266,017 Net Block 224,181,109 77,228,979 Capital Work In Progress 3 683,358,940 611,329,703 Construction Stores and

Advances

4 71,997,329 157,578,357

979,537,378 846,137,039 CURRENT ASSETS, LOANS AND ADVANCES

Cash and Bank Balances 5 3,600,243 8,477,311 Loans and Advances 6 4,457,926 2,981,450 Other Current Assets 7 14,489 9,714

8,072,658 11,468,475 Less : CURRENT LIABILITIES & PROVISIONS Current Liabilities 8 43,180,657 9,578,381 Provisions 9 265,671 2,091,825

43,446,328 11,670,206 Net Current Assets (35,373,670) (201,731) PROFIT & LOSS ACCOUNT 81,326,692 81,326,692 Total 1,025,490,400 927,262,000

Notes on Accounts 16

Schedules 1 to 16, signifi cant accounting policies form an integral part of accounts.

As per our report of even date For and on behalf of Board of DirectorsFor K. PRASAD & COMPANYChartered Accountants

(K.M. Agarwal) (Manish Kumar) (A.K. Singhal) (R.S. Sharma)Partner Company Secretary Director ChairmanMembership No. 016205

Place : New Delhi Date : 05.05.2010

NTPC HYDRO LIMITEDPROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010

Rs.SCHEDULE

NO.

Current Year31.03.2010

Previous Year

31.03.2009INCOME Other Income 10 - - Total - - EXPENDITURE Employees’ remuneration and

benefi ts

11 - -

Administration & other expenses 12 - 10,800 Depreciation 2 - - Finance charges 13 - - Total - 10,800 Loss before Tax and Prior Period

Adjustment

- 10,800

Prior Period Expenditure (net) 14 - - Loss before Tax - 10,800 Fringe Benefi t Tax - 565,209 Less: Allocated to EDC - 565,209 Loss after Tax - (10,800)Balance brought forward (81,326,692) (81,315,892)Balance carried to Balance Sheet (81,326,692) (81,326,692)Expenditure During Construction 15Earning per share(Basic/Diluted)Notes on Accounts 16Schedules 1 to 16, signifi cant accounting policies form an integral part of accounts.

As per our report of even date For and on behalf of Board of DirectorsFor K. PRASAD & COMPANYChartered Accountants

(K.M. Agarwal) (Manish Kumar) (A.K. Singhal) (R.S. Sharma)Partner Company Secretary Director ChairmanMembership No. 016205

Place : New Delhi Date : 05.05.2010

SIGNIFICANT ACCOUNTING POLICIES1. BASIS OF PREPARATION

The fi nancial statements are prepared on accrual basis of accounting under historical cost convention in accordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 1956 including accounting standards notifi ed there under.

2. USE OF ESTIMATES

The preparation of fi nancial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from these estimates & assumptions and such differences are recognized in the period in which the results are crystallized.

3. FIXED ASSETS

3.1 Fixed Assets are carried at historical cost less accumulated depreciation.

3.2 Expenditure on renovation and modernization of fi xed assets resulting in increased life and/or effi ciency of an existing asset is added to the cost of related assets.

3.3 Intangible assets are stated at their cost of acquisition less accumulated amoritisation.

3.4 Capital expenditure on assets not owned by the Company is refl ected as a distinct item in Capital Work-in-Progress till the period of completion and thereafter in the Fixed Assets.

3.5 Deposits, payments/liabilities made provisionally towards compensation, rehabilitation and other expenses relatable to land in possession are treated as cost of land.

3.6 In the case of assets put to use, where fi nal settlement of bills with contractors is yet to be effected, capitalization is done on provisional basis subject to necessary adjustment in the year of fi nal settlement.

3.7 Assets and systems common to more than one generating unit are capitalised on the basis of engineering estimates/assessments.

4. CAPITAL WORK-IN-PROGRESS

4.1 Administration and general overhead expenses attributable to construction of fi xed assets incurred till they are ready for their intended use are identifi ed and allocated on a systematic basis to the cost of related assets.

4.2 Deposit work/cost plus contracts are accounted for on the basis of statements of account received from the contractors.


EXPENDITURE

5.1 Depreciation is charged on straight line method at the rates specifi ed in Schedule XIV of the Companies Act, 1956 except for the following assets in respect of which depreciation is charged at the rates mentioned below:

Rate of depreciation (p.a.)1 Personal Computers/Laptops including Peripherals 19%

2 Photocopiers & Fax Machines 19%

3 Air-conditioners, Water Coolers and Refrigerators 8%

5.2 Depreciation on addition to / deduction from fi xed assets during the year is charged on pro-rata basis from / up to the month in which the asset is available for use / disposal.

5.3 Assets costing up to Rs. 5000/- are fully depreciated in the year of acquisition.5.4 Cost of software recognized as intangible assets, is amortised on straight line

method over a period of legal right to use or 3 years, whichever is earlier. 5.5 Capital expenditure on asset not owned by the company is amortised

over a period of 4 years from the year in which the fi rst unit of project concerned comes into commercial operation and thereafter from the year in which the relevant asset becomes available for use. However, such expenditure for community development in case of stations under operation is charged off to revenue.

5.6 Lease hold lands other than acquired on perpetual lease are amortized over the lease period Leasehold buildings are amortised over the lease period or 30 years, whichever is lower. Leasehold land and buildings, whose lease period is yet to be fi nalised, are amortised over a period of 30 years.

5.7 Expenses on ex-gratia payments under voluntary retirement scheme, training & recruitment and research and development are charged to revenue in the year incurred.

5.8 Prepaid expenses and prior period expenses /income of items ofRs. 100,000/ - and below are charged to natural heads of accounts.


A provision is recognized when the company has a present obligation as result of a past event and it is probable that an outfl ow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date and are not discounted to present value. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to refl ect the current management estimate.


Cash fl ow statement is prepared in accordance with the indirect method prescribed in Accounting Standard (AS) 3 on ‘Cash Flow Statements’.


NTPC HYDRO LIMITED

SCHEDULES - FORMING PART OF ACCOUNT

Rs.

Schedule 1

As at31.03.2010

As at

31.03.2009

CAPITALAUTHORISED

500,000,000 Equity shares of Rs. 10/- each

(Previous year 500,000,000 Equity shares of

Rs.10/- each)

5,000,000,000 5,000,000,000

ISSUED, SUBSCRIBED AND PAID-UP

Schedule 1 (Contd.) Rs.

As at31.03.2010

As at

31.03.2009

10,07,99,040 Equity shares of Rs. 10/- each

fully paid up (Previous year 9,24,26,200 Equity

shares of 10/- each fully paid up) held by

the holding company, N T P C Limited and its

nominees

1,007,990,400 924,262,000

Total 1,007,990,400 924,262,000

Schedule 2FIXED ASSETS Rs.

Gross Block Depreciation Net Block

Fixed Assets As at Additions Deductions/ As at As at For the Deductions/ Upto As at As at01.04.2009 Adjustments 31.03.2010 01.04.2009 year Adjustments 31.03.2010 31.03.2010 31.03.2009

TANGIBLE ASSETSLand:(including development expenses)Freehold 58,910,418 97,236,509 - 156,146,927 - - - - 156,146,927 58,910,418 Leasehold 12,895,437 4,411,213 3,058,019 14,248,631 665,438 386,117 64,262 987,293 13,261,338 12,229,999 Plant & Machinery 78,825 - - 78,825 18,148 3,199 - 21,347 57,478 60,677 Furniture, Fixtures & other offi ce equipments

4,777,905 68,922 4,975 4,841,852 1,819,558 282,990 4,975 2,097,573 2,744,279 2,958,346

EDP, WP Machines & SATCOM Equipments

3,400,632 831,913 - 4,232,545 1,753,420 576,083 - 2,329,503 1,903,042 1,647,212

Electrical Installations 82,569 - - 82,569 5,907 6,723 - 12,630 69,939 76,663 Capital expenditure on assets not owned by the company

1,285,375 48,251,420 - 49,536,795 - - - - 49,536,795 1,285,375

INTANGIBLE ASSETSSoftware 63,835 506,761 - 570,596 3,546 105,739 109,285 461,311 60,289 Total 81,494,996 151,306,738 3,062,994 229,738,740 4,266,017 1,360,851 69,237 5,557,631 224,181,109 77,228,979

Previous Year 37,638,671 43,055,410 (800,915) 81,494,996 3,012,283 1,362,305 108,571 4,266,017 77,228,979 34,626,388

Depreciation for the year is allocated as given below:- Current Year Previous Year

Charged to Profi t & Loss Account 1,360,851 1,362,305

Transferred to Expenditure During Construction (Schedule 15) 1,360,851 1,362,305

Total - -

Schedule 3

CAPITAL WORK-IN-PROGRESS Rs.

As at Deductions & As at As at 01.04.2009 Additions Adjustments Capitalised 31.03.2010 31.03.2009

Roads, Bridge, Culverts & Helipads 824,000 13,221,322 - - 14,045,322 824,000

Dams, Spillways 174,366,000 - - - 174,366,000 174,366,000

Expenditure towards diversion of forest land 78,462,518 - (3,058,019) - 81,520,537 78,462,518

Expenditure during construction 282,888,873 77,577,685 - 360,466,558 282,888,873

Capital Expenditure on Assets not Owned by the Company 22,997,648 25,253,772 - 48,251,420 - 22,997,648

Survey, Investigation, Consultancy and Supervision Charges 51,790,664 1,169,859 - - 52,960,523 51,790,664

Total 611,329,703 117,222,638 (3,058,019) 48,251,420 683,358,940 611,329,703

Previous Year 343,591,850 267,737,853 - - 611,329,703 343,591,850

Schedule 4

CONSTRUCTION STORES AND ADVANCES Rs.

As at As at

31.03.2010 31.03.2009ADVANCES FOR CAPITAL EXPENDITURE

Unsecured, considered good - Covered by bank guarantees 16,431,685 16,516,379

Others 55,565,644 141,061,978

Total 71,997,329 157,578,357

Schedule 5CASH & BANK BALANCESBalances with scheduled banks Current Accounts 3,600,243 8,477,311

Total 3,600,243 8,477,311

Schedule 6LOANS AND ADVANCESADVANCES(Recoverable in cash or in kind or for value to be received)Employees (including imprest) Unsecured, considered good - -

Others

Unsecured, considered good 4,163,525 2,850,104

DEPOSITS

Deposits with sales tax authorities 50,000 50,000

Others 104,400 4,400

Advance Tax & Tax Deducted at Source 1,457,479

Less: Provision for fringe benefi t tax 1,317,478 140,001 76,946

Total 4,457,926 2,981,450

Schedule 7 Rs.

OTHER CURRENT ASSETS As at As at

31.03.2010 31.03.2009

Interest Accrued (on Term Deposits) 14,489 9714

Total 14,489 9714

Schedule 8CURRENT LIABILITIESSundry Creditors

For capital expenditure

Other than micro & small enterprises 19,233,335 2,295,962


Other than micro & small enterprises 546,908 586,370

Deposits, Retention Money from Contrac-

tors and Others

7,180,226 3,843,479

Less: Investments held as security - 15,500

26,960,469 6,710,311

Amount payable to NTPC Ltd. 10,004,866 2,605,705

36,965,335 9,316,016

Other Liabilities 6,215,322 262,365

Total 43,180,657 9,578,381

Schedule 9PROVISIONSProvision for Employee Benefi ts

Opening Balances 2,091,825 3129181

Addition during the year - -

Less : Used during the year 1,826,154 1037356

Total 265,671 2091825


Schedule 10

OTHER INCOME Rs.

As at As at

31.03.2010 31.03.2009

Income from other source

Interest Accrued on Deposit (Gross) 4,775 4842

(Tax deducted at source - Current year nil

& Previous year nil)

Miscellaneous Income 7,437 37584

Liquidated Damages Recovered 21,528 -

Total 33,740 42426

Less: Transferred to Expenditure During

Construction-Sch. No.15

33,740 42426

Total - -

Schedule 11

EMPLOYEES’ REMUNERATION AND BENEFITS

Employees; remuneration and benefi ts

Salaries, Wages, Bonus, Allowances & Benefi ts 53,726,107 49,791,722

Contribution to Provident and Other Funds 5,046,215 4,920,652

Welfare Expenses 2,155,925 4,755,550

60,928,247 59,467,924


Construction-Sch.No.15

60,928,247 59,467,924

Total - -

Schedule 12

ADMINISTRATION & OTHER EXPENSES Rs.


Power Charges 208,182 276,967

Water Charges 13,240 3,930

Rent 4,982,236 4,890,931

Repairs & Maintenance

Buildings 1,390,047 810,941

Others 1,234,748 1,685,336

Insurance 10,630 11,770

Training & Recruitment Expenses - 10,800

Communication Expenses 783,587 653,354

Payment to Auditors

Audit Fee 99,270 49,635

In Other Capacity - -

Advertisement & Publicity 110,000 59,926

Tender Expenses 1,165,058 1,081,548

Security Expenses 463,705 30,000

Entertainment Expenses 248,952 354,342

Inland Travelling Expenses 2,740,083 3,405,099

Expenses for guest house 718,842

Less: Recoveries 10,655

708,187 846,669

Books and Periodicals 21,221 31,589

Professional charges and consultancy fees 194,772 412,491

Legal Expenses 1,550 -

EDP hire and other charges 531,976 298,779

Printing and Stationery 202,490 162,566

Miscellaneous Expenses 285,913 212,074

Rates & Taxes 109,536 129,182

Loss on write off of fi xed assets - 842

R&R Expenses - 350,563

Expenses on Hiring of vehicle 1,318,412 1,745,705

Subscription to trade & other Association - 1,000

16,823,795 17,516,039



16,823,795 17,505,239

Total - 10,800

Schedule 13 Rs.

FINANCE CHARGES Current Year Previous Year

Bank Charges 6,211 12,547



6,211 12,547

Total - -

Schedule 14

PRIOR PERIOD EXPENDITURE Rs.

Expenditure

Salary, wages, bonus, allowances & benefi ts (1,591,792) -

Travelling Expenses 148,375 -

Depreciation (64,262) -

(1,507,679) -


Construction-Sch.No.15

(1,507,679) -

Total - -

Schedule 15

EXPENDITURE DURING CONSTRUCTION

A. Employees Remuneration and Other Benefi ts

Salaries, Wages, Bonus, Allowances and Benefi ts 53,726,107 49,791,722

Contribution to provident and other funds 5,046,215 4,920,652

Welfare expenses 2,155,925 4,755,550

Total (A) 60,928,247 59,467,924

B. Administration & Other Expenses

Power 208,182 276,967

Water Charges 13,240 3,930

Rent 4,982,236 4,890,931

Repair & maintenance

Buildings 1,390,047 810,941

Others 1,234,748 1,685,336

Insurance 10,630 11,770

Communication Expenses 783,587 653,354

Remuneration to Auditors 99,270 49,635

Advertisement & Publicity 110,000 59,926

Tender Expenses 1,165,058 1,081,548

Security Expenses 463,705 30,000


Inland Travelling Expenses 2,740,083 3,405,099

Guest House Expenses 718,842

Less:Recoveries 10,655

708,187 846,669

Books & Periodicals 21,221 31,589

Professional Charges and Consultancy Fee 194,772 412,491

Legal Expenses 1,550

EDP Hire and other charges 531,976 298,779

Printing and Stationary 202,490 162,566


Rates & Taxes 109,536 129,182

Loss on write off of Assets - 842

Community Development Expenses - 350,563

Expenses on Hiring of vehicle 1,318,412 1,745,705

Subscription to Trade & Other Association - 1,000

Total (B) 16,823,795 17,505,239

C. Depreciation 1,360,851 1,362,305

Total (C ) 1,360,851 1,362,305

D. Interest & Finance Charges Capitalised


Total (D) 6,211 12,547

E. Fringe Benefi t Tax - 565,209

Total (E) - 565,209

F. Prior Period Expenditure (1,507,679)

(1,507,679) -

G. Other Income 33,740 42,426

33,740 42,426

Total (A+B+C+D+E+F-G) 77,577,685 78,870,798


Schedule 16

NOTES ON ACCOUNT

1. Estimated amount of contract remaining to be executed on capital account

and not provided for Rs. 2847.91 lacs (Previous year Rs. 2919.98 lacs). [Net of

advances].

2. (a) The execution of lease agreement of 187.324 acres lease hold land

of value Rs. 142.49 lacs (Previous year 175.02 acres, value Rs. 98.37

lacs) in favour of the Lata Tapovan Hydro Power Project is still awaiting

completion for legal formalities.

(b) Advances for Capital Expenditure includes amount of Rs. 525.59 lacs

deposited with LA Collector Darjeeling towards tree, structure, solitium

etc. for Karmi mouza, of Rammam III HEP pending capitalization for

fi nalization of R&R and valuation thereof.

3. Disclosure Regarding Operating Leases:

The company’s signifi cant leasing arrangements are in respect of operating

leases of premises for residential use of employees, offi ces and transit camps.

These leasing arrangements are usually renewable on mutually agreed terms

but are not non-cancellable. Employees’ remuneration and benefi ts include

Rs. 65,41,281/= (Previous year Rs. 30,72,355/-) towards lease payments, net

of recoveries, in respect of premises for residential use of employees. Lease

payments in respect of premises for offi ces and transit camps are shown as

Rent in Schedule -12 Administration and other expenses.

4. Amount payable to NTPC Ltd. holding company has been shown Rs.

1,00,04,866/- as part of the current liabilities. This amount is payable to NTPC

Ltd. on account of net balance of transactions upto 31st March 2010. The

company will issue equity share against the payable amount to NTPC Ltd. in

subsequent year.

5. Earning Per Share

The elements considered for calculation for Earning per share (Basic and

Diluted) are as under: -


Net Loss used as numerator 0 10800

Weighted Average number of equity shares

used as denominator

92632654 73540838

Earning Per Share (Rupees) – Basic - -

Weighted Average number of equity shares

used as denominator

92632654 73540838

Earning Per Share (Rupees) – Diluted - -

Face Value per share (Rupees) 10 10

6. Corporate expenses has been allocated to Lata Tapovan Project and Rammam

Project in the ratio of capital expenditure of the projects during the year -

Rs.

Projects 2009-10 2008-09

Lata Tapovan Project 12315968 28399469

Rammam Project 30537694 8010106

7. Balances shown under advances and creditors are subject to confi rmation/

reconciliation and consequent adjustment, if any.

8. Contingent Liability: Company’s liability towards reimbursement of Income Tax

on HRR perks amounting to Rs. 5,53,120/- stayed by the Hon’ble Allahabad

High Court (Previous year 2,76,560/-).

9. All the employees of the company are on secondment from the Holding

Company.

10. The employees remuneration and benefi ts includes (-) Rs.1308374/= (Previous

year Rs. 48,81,758/-) in respect of gratuity, leave encashment, post retirement

medical benefi ts, transfer traveling allowance on retirement / death, long

service awards to employees, farewell, gift on retirement and economic

rehabilitation scheme as apportioned by Holding Company i.e. NTPC Limited

on actuarial valuation at the year end.

11. Managerial remuneration paid/payable to Chief Executive Offi cer

Rs.


Salaries and allowances 2649615 1536960


funds including gratuity & group insurance

172032 96000

Other benefi ts 95292 63712

12. Based on information available with the company, there are no suppliers/

contractors/service providers who are registered as micro, small or medium

enterprise under “ The Micro, Small and Medium Enterprises Development

Act, 2006” as on 31.03.2010.

13. Previous year fi gures have been regrouped / rearranged wherever necessary.

14. Information pursuant to part IV of schedule VI of the companies Act, 1956



Registration No. U 4 0 1 0 1 D L 2 0 0 2 G O I 1 1 8 0 1 3Date Month Year

Balance-Sheet date 3 1 0 3 2 0 1 0II. Capital Raised during the year (Amount in Rs.Thousands)

Public Issue Right issueN I L N I LBonus Issue Private PlacementN I L 8 3 7 2 8

III.Position of Mobilization and Deployment of funds (Amount in Rs. Thousands)Total Liability Total Assets1 0 6 8 9 3 7 1 0 6 8 9 3 7Source of FundsPaid-up Capital Capital Deposit Account1 0 0 7 9 9 0 1 7 5 0 0Secured Loans Reserves & SurplusN I L N I LDeferred Tax Liability Unsecured LoansN I L N I LApplication of FundsNet Fixed Assets Investment9 7 9 5 3 7 N I LNet Current Assets Misc. Expenditure- 3 5 3 7 4 N I L

Accumulated Losses8 1 3 2 7


Turnover (Including Other Income) Total ExpenditureN I L N I LLoss before Tax Loss after TaxN I L N I LEarning per share in Rs. Dividend Rate%0 . 0 0 N I L

V. Generic Name of three Principal Product/Services of Company (As per monetary terms)

Product Description: Item Code No.G E N E R A T I O N O F E L E C T R I C I T Y N A

As per our report of even date For and on behalf of Board of DirectorsFor K. PRASAD & COMPANYChartered Accountants(K.M. Agarwal) (Manish Kumar) (A.K. Singhal) (R.S. Sharma)Partner Company Secretary Director ChairmanMembership No. 016205 Place : New Delhi Date : 05.05.2010

NTPC HYDRO LIMITEDCASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2010

Rs.Current Year Previous Year

A.CASH FLOW FROM OPERATING ACTIVITIESNet Profi t/(Loss) before tax and Prior Period Adjustment - (10,800)Operating Profi t before Working Capital Changes - (10,800)Adjustment for:

Trade Payables and Other Liabilities 31,776,122 Loans and Advances (1,539,531) Other Current Assets (4,775)

30,231,816 (26,202,929)Cash generated from operations - (26,213,729) Direct Taxes paid 63,055 (548,991) Net Cash from Operating Activities-A 30,294,871 (26,762,720)

B.CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets & CWIP & Const Advance (133,400,339) (271,435,129) Net cash used in Investing Activities-B (133,400,339) (271,435,129)

C.CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Share Capital Deposits 98,228,400 304,462,000 Net cash fl ow from Financing Activities-C 98,228,400 304,462,000Net Increase/Decrease in Cash and Cash equivalents (A+B+C) (4,877,068) 6,264,151Cash and cash equivalents (Opening Balance) 8,477,311 2,213,160Cash and cash equivalents (Closing Balance) 3,600,243 8,477,311

As per our report of even date For and on behalf of Board of DirectorsFor K. PRASAD & COMPANYChartered Accountants(K.M. Agarwal) (Manish Kumar) (A.K. Singhal) (R.S. Sharma)Partner Company Secretary Director ChairmanMembership No. 016205 Place : New Delhi Date : 05.05.2010


AUDITORS’ REPORTTo the Members of NTPC Hydro LimitedNew Delhi

1. We have audited the attached Balance Sheet of NTPC HYDRO LIMITED (a

wholly owned subsidiary of NTPC Ltd. As at 31st Match 2010, the Profi t and

Loss Accounts and also the cash fl ow statement for the year ended on the

year ended on that date annexed thereto. These fi nancial statements are the

responsibility of the company’s management. Out responsibility is to express

an opinion on these fi nancial statements based on our audit.

2. We conducted our audit in accordance with Auditing Standards generally

accepted in India. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether the fi nancial statements

are free of material misstatement. An audit includes examining, on test basis,

evidence supporting the amounts and disclosures in the fi nancial statements.

An audit also includes assessing the accounting principles used and signifi cant

estimates made by the management, as well as evaluating the overall fi nancial

statement presentation. We believe that our audit provides a reasonable basis

for our opinion.

3. As required by the Companies (Auditors’ Report) Order, 2003 issued by the

Central Government of India in terms of sub-section (4A) of section 227 of the

Companies Act, 1956, we enclose in the annexure a statement on the matters

specifi ed in paragraphs 4 and 5 of the said Order.

4. Further to our comments in annexure referred to above, we report that:

i) We have obtained all the information and explanations which to the best

of our knowledge and belief were necessary for the purposes of our audit;

ii) In our opinion, proper books of account as required by law have been kept

by the company so far as appears from our examination of those books;

iii) The Balance Sheet, Profi t and Loss Account and Cash Flow Statement

dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Profi t and Loss Account and Cash

Flow Statement dealt with by this report comply with the Accounting

Standards referred to in sub-section (3C) of Section 211 of the

Companies Act, 1956;

v) Being a Government company, pursuant to the Notifi cation no. GSR

829(E) dated 17.07.2003 issued by Government of India, provisions of

clause (g) of sub-section (1) of section 274 of the Companies Act, 1956,

are not applicable to the company;

vi) In our opinion to the best of our information and according to the

explanations given to us, the said accounts read together with notes

thereon give the information required by the Companies Act, 1956 in the

manner so required and give a true and fair view in conformity with the

accounting principles generally accepted in India:

a. in the case of the Balance Sheet, of the state of affairs of the

company as at 31st March 2010,

b. in the case of the Profi t and Loss Account, of the Nil profi t/Loss for

the year ended on that date, and

c. in the case of Cash Flow Statement, of the cash fl ows for the year

ended on that date.For K. Prasad & Company

Chartered Accountants(K. M. Agarwal)

Place : New Delhi Partner

Date : 05.05.2010 Membership No. 16205

Annexure referred in paragraph 3 of Auditors’ Report to the Members of NTPC

HYDRO LIMITED on the accounts for the year ended on 31st March, 2010

i) a) The company has maintained proper records showing full particulars

including quantitative details and situation of fi xed assets.

b) All fi xed assets have been physically verifi ed by the management during

the year which in our opinion is reasonable having regard to the size

of the company and the nature of its assets. No Material discrepancies

were noticed on such verifi cation.

c) In our opinion and according the information and explanations given

to us no substantial part of fi xed assets of the company have been

disposed off during the year.

ii) The company does not have inventory. Accordingly, the provisions of clause

4(ii) (b) & (c) of the Companies (Auditors’ Report) Order, 2003 are not

applicable to the company.

iii) The company has neither taken nor granted loans, secured or unsecured from/

to companies, fi rms and other parties covered in the register maintained under

section 301 of the Companies Act, 1956. Accordingly paragraphs of clauses 4(iii)

(b), (c) & (d) of the Companies Auditors’ Report Order, 2003 are not applicable.

iv) In our opinion and according to the information and explanation given to us,

there are adequate internal control procedures commensurate with the size of

the company and the nature of its business with regard to purchase of fi xed

assets. The company has not made any purchase/sale of goods. During the

course of our aduit, we have not observed any continuing failure to correct

major weakness in internal control systems.

v) a) The company has not carried out any transactions required to the entered

in the register maintained under section 301 of the Companies Act, 1956.

b) In view of clause (v) (a) above, the clause (v) (b) is not applicable.

vi) According to the information and explanations given to us, the company has

not accepted deposits under the provisions of section 58A & 58AA of the

Companies Act, 1956 and the Companeis (Acceptance of Deposits) Rules 1975.

vii) In our opinion, the company has an internal audit system commensurate with

the size and nature of its business.

viii) The maintenance of cost records under section 209(I) (d) of the Companies

Act, 1956 is not applicable to the company, as the company has not

commeced any activities related to distribution of electricity.

ix) (a) The company is regular in depositing with appropriate authorities

undisputed statutory dues of Income Tax and Sales Tax.

(b) According to the information and explanation given to us, no undisputed

amounts payable in respect of income tax, sales tax were in arrears, as

at 31st March, 2010 for a period of more than six months from the date

they became payable.

(c) The provisions related to Providend Fund, Investor Education and Protection

Fund, Employees State Insurance, Wealth Tax, Custom Duty, Excise Duty,

Service Tax and other Statutory dues are not applicable to the company.

(d) According to the information and explanation given to us, there are no

dues of sales tax, income tax, custom duty, wealth tax, excise duty and

cess which have not been deposited on account of any dispute.

x) As the company has been registered for a period of less than fi ve years, the

provisions of clause 4(x) of the Company (Auditor’s Report) Order 2003 is not

applicable.

xi) According to the information and explanation given to us, the company has

not taken loans from fi nancial institution, banks or debenture holders.

xii) The company has not granted loans and advances on the basis of security by

way of pledge of shares, debentures, and other securities.

xiii) The company is not a chit fund or a nidhi / mutual benefi t fund / society.

Therefore, the provisions of clause 4(xiii) of the Companies (Auditors’ Report)

Order, 2003 is not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and

other investments. Accordingly, the provision of clause 4(xiv) of the Companies

(Auditors’ Report) Order, 2003 is not applicable to the company.

xv) The company has not given any guarantee for loans taken by others from banks

or fi nancial institutions.

xvi) The company has not taken term loans during the year.

xvii) The Company has not raised short term or long term funds during the year.

xviii) According to the information and explanations given to us, the company has

made preferential allotment of shares to National Thermal Power Corporation

Limited, Holding Company, covered in the register maintained under section

301 of the Companies Act, 1956. In our opinion, the price at which shares have

been issued is not prejudicial to the interest of the company.

xix) The company has not issued any debentures.

xx) The company has not raised money by public issue.

xxi) According to the information and explanation given to us, no fraud on or by

the company has been noticed or reported during the course of our audit.

For K. Prasad & CompanyChartered Accountants

(K.M. Agarwal)

Place : New Delhi PartnerDated: 05.05.2010 Membership No. 16205

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION 619 (4) OF THE COMPANIES ACT, 1956, ON THE ACCOUNTS OF NTPC HYDRO LIMITED FOR THE YEAR ENDED 31 MARCH 2010.

The preparation of fi nancial statements of NTPC HYDRO LIMITED, New Delhi, for the

year ended 31 March 2010 in accordance with the fi nancial reporting framework

prescribed under the Companies Act, 1956, is the responsibility of the management

of the Company. The statutory auditors appointed by the Comptroller and Auditors

General of India under Section 619(2) of the Companies Act, 1956, are responsible

for expressing opinion on these fi nancial statements under Section 227 of the

Companies Act, 1956, based on independent audit in accordance with the auditing

and assurance standards prescribed by their professional body the Institute of

Chartered Accountants of India. This is stated to have been done by them vide their

Audit Report dated 05 May 2010.

I, on behalf of the Comptroller and Auditor General of India, have decided not to

review the report of the statutory auditors’ on the accounts of NTPC HYDRO LIMITED,

New Delhi for the year ended 31 March 2010 and as such have no comments to

make under Section 619(4) of the Companies Act, 1956.

Place: New Delhi

Dated: 11 May, 2010

For and on behalf of theComptroller & Auditor General of India

(Ghazala Meenai)Principal Director of Commercial Audit and



NTPC Vidyut Vyapar Nigam Limited


Directors’ ReportTo the Members,

Your Directors have pleasure in presenting the Eighth Annual Report on the working of the Company for the fi nancial year ended on 31st March 2010 together with Audited Statement of Accounts, Auditors’ Report and Review by the Comptroller & Auditor General of India for the reporting period.

FINANCIAL RESULTS (Rs. in Crore)

2009-10 2008-09

Total Income/Revenue 85.13 121.05

Total Expenditure 42.05 45.53

Prior period income/expenditure(net) - 0.28

Profi t before Tax 43.08 75.24

Less: Tax 14.69 25.71

Profi t after tax 28.39 49.53

Balance brought forward 1.06 1.23

Profi t available for appropriation 29.45 50.76

Transfer to general reserve 17.00 38.00

Interim Dividend - 2.00

Final Dividend-Proposed 10.00 8.00

Tax on Interim Dividend - 0.34

Tax on Final Dividend- Proposed 1.66 1.36

Surplus carried forward 0.79 1.06

DIVIDEND

Your Directors have recommended a dividend of Rs. 10 Crore @ Rs. 5 per equity share on the face value of fully paid-up equity share capital of Rs. 10 each, for the fi nancial year 2009-10. The dividend shall be paid after your approval at this Annual General meeting.

POWER TRADING-BUSINESS

In accordance with Central Electricity Regulation Commission (CERC) notifi cation your Company is a trading Licensee under Category I (highest category) during the current fi nancial year 2009-10.

During the fi nancial year under review your company had traded 5549 million units (including 2341 million units traded under SWAP arrangements) amounting to Rs.1838 Crore, as compared to 4831 million units (including 2288 million units traded under SWAP arrangements) amounting to Rs.1896 Crore in the fi nancial year 2008-09. The overall volume of power traded by Company during the fi nancial year 2009-10 has increased by 15% over last fi nancial year 2008-09.

BUSINESS INITIATIVESThe Cabinet has approved the Jawaharlal Nehru National Solar Mission on November 19, 2009, with an aim to have capacity of 20000 MW of solar power by 2022, with immediate target for 1000 MW by 2013 for phase-I.

Ministry of Power (MoP), Government of India through a Presidential Directive, on December 22, 2009, has designated your Company as a Nodal Agency for fi rst phase of the National Solar Mission for 2009-2013, with following mandates:-

(i) your Company should enter into Power Purchase Agreements with Solar Power Developers to purchase power from the solar power projects connected at 33kV and above grid at tariff regulated by CERC and enter into back-to-back Power Sale Agreements with Distribution Utilities for sale of such power bundled with power sourced from NTPC, unallocated power.

(ii) the MoP should allocate equivalent megawatt capacity from the unallocated quota of NTPC power stations at the disposal of the Government of India to your Company for bundling together solar power to be procured by the Company under the order.

(iii) solar power and unallocated power of NTPC stations bundled together should be sold by your Company to the Distribution Utilities.

The mentioned arrangement would be limited to cumulative solar power capacity of 1000 MW in operation upto March 31, 2013.

Your Company has excelled in many fi elds including expanding customer base, selling captive power, selling of Independent Power Producers (IPP) power, entering into power banking arrangements and also selling un-requisitioned surplus from NTPC stations. The customer base of the Company has increased to 65 which include private discoms and also utilities. The Company had made strong presence in all the fi ve regions of India.

Your Company has started trading of power from IPP viz. M/s. Jindal Power Limited and Torent Power Limited and Captive Power Plants of Durgapur Steel Limited, Chhattisgarh, Gujarat and Andhra Pradesh. This new business initiative has contributed signifi cantly to the company’s business volumes.

Power Banking arrangement – a new initiative by the company has resulted in not only stabilizing the power market but also lowering the market price. The banking volume of 2288 million units in fi nancial year 2008-09 has been increased to 2341 million units during the fi nancial year 2009-10.

The business initiative for sale of Fly ash and Cenosphere were started during the year 2005-06. During the fi nancial year 2009-10, 759056 MT of fl y ash was sold as compared to 634768 MT of fl y ash sold in the fi nancial year 2008-09.

The domestic sale of Cenosphere is being conducted through E-auction portal of MSTC Limited, a public sector company. During the year under review the Company has sold 553 MT of Cenosphere as compared to 432 MT of Cenosphere in the fi nancial year 2008-09.

FIXED DEPOSITSThe Company has not accepted any fi xed deposit during the fi nancial year ending 31st March 2010.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis is enclosed at Annexure-I.

AUDITORS’ REPORT

The Comptroller and Auditor General of India (C&AG) have appointed M/s N.K. Jain Mittal & Co., Chartered Accountants as Statutory Auditors of the Company for the fi nancial year 2009-10.

There is no adverse comment, observation or reservation in the Auditors’ Report on the accounts of the Company.

REVIEW OF ACCOUNT BY COMPTROLLER & AUDITOR GENERAL OF INDIA

Supplementary Audit was conducted by Comptroller & Auditor General of India under Section 619(3) (b) of the Companies Act, 1956. C&AG vide its letter dated May 31, 2010 communicated that on the basis of audit, nothing signifi cant was noticed giving rise to any comment upon or supplement to Statutory Auditors’ report under Section 619(4) of the Companies Act, 1956. A letter from C&AG on the accounts of the Company for the fi nancial year 2009-10 is placed with the report of Statutory Auditors of your Company.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGOThere are no signifi cant particulars, relating to conservation of energy, technology absorption under the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988, as your Company does not own any manufacturing facility.

During the fi nancial year under review the Company did not have any foreign currency earnings and expenditure.


The Particular of employees pursuant to Section 217 (2A) of the Companies Act, 1956 are given in Annex-II.

AUDIT COMMITTEE

As per the provisions of section 292A of the Companies Act, 1956, your Company has constituted an Audit Committee of the Board of Directors comprising of Shri Chandan Roy, Shri A.K. Singhal and Shri R.C. Shrivastav. Four meetings of the Audit Committee were held during the fi nancial year 2009-10. The senior-most Director on the Audit Committee shall be the Chairman and quorum shall be of two Directors.


As required under Section 217 (2AA) of the Companies Act, 1956, your Directors confi rm that:(i) in the preparation of the annual accounts, the applicable accounting standards

had been followed along with proper explanation relating to material departures;

(ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the fi nancial year 2009-10 and of the profi t of the company for that period;

(iii) the Directors had taken proper and suffi cient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) the Directors had prepared the annual accounts on going concern basis.

BOARD OF DIRECTORSConsequent upon superannuation of Shri R.C. Shrivastav, from the services of NTPC Limited, he has ceased to be the Director of the Company w.e.f. June 30, 2010 (A/N). The Board wishes to place on record its deep appreciation for the valuable services rendered by Shri R.C. Shrivastav, during his association with the Company.

The Board of Directors at its Meeting held on September 8, 2009 and July 14, 2010, had appointed Shri Satish Chand Mehta and Shri I.J. Kapoor, respectively, as an Additional Director of the Company. Shri Satish Chand Mehta and Shri I.J. Kapoor holds offi ce only upto the date of ensuing Annual General Meeting. The Company has received a requisite notice in writing from NTPC Limited, proposing their candidature for the offi ce of Director liable to retire by rotation.

In accordance with the provisions of Companies Act, 1956, Shri A.K. Singhal, Director shall retire by rotation at this Annual General Meeting of your Company and, being eligible, offer himself for re-election.

ACKNOWLEDGMENT

The Board of Directors wish to place on record their appreciation for the support and co-operation extended by NTPC Limited, the Central Electricity Regulatory Commission, the valued customers of the Company, various State Electricity Boards, the Auditors and the Bankers of the Company.


Place: New Delhi (R.S. SHARMA)Date: July 14, 2010 CHAIRMAN


Annex-IMANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The inadequacy of generation has characterized the Power Sector operation in India.

There is an inherent diversity in demand from various States and Regions resulting in

periods of seasonal surplus in one area and period of defi cit in another.

Diversities between availability and consumption of power leads to signifi cant

potential for trading and providing cheap and reliable power to consumers in defi cit

area. Trading is essential for resource optimization and meeting short-term demand

by utilizing surpluses available. The need to meet the challenges posed by growing

demands for power by buying power from surplus regions and supplying to defi cit

regions was felt in late nineties. The Electricity Act 2003 enacted on June 10, 2003

envisaged a multi-buyer and multi-seller market model, wherein, the electricity

trading is a critical element in the value chain to develop a competitive market for

electricity. The Act recognizes trading in power as a distinct business activity.

Trading can be inter-state or intra-state and the appropriate regulatory commission

is to fi x the eligibility criteria for a trader. Central Electricity Regulatory Commission

(CERC) issued its order and regulations regarding the grant of license for inter state

trading in January 2004, which was subsequently repealed by Regulations, 2009.

CERC has fi xed a trading margin of 7 paisa per kwh in case the sale price is exceeding

Rs. 3 per kwh and 4 paisa per kwh where sale price is less than or equal to Rs. 3 per

kwh for short term trading. However, Transactions through power swapping/ banking

are out of purview of the CERC Regulations for Short Term Trading.

During the last four years, 45 traders have obtained licenses for serving the needs

of the various clients, out of which 6 nos. of licensees have been surrendered /

cancelled. The traders are issued license under categories I, II or III depending on

the volume of units proposed to be traded and net worth. During 2009-10 out of

the total electricity generation of approximately 764 billion units approximately 41

billion units were traded, representing 5.35% of trading to total generation.

Structure of Power Industries in India* (Billion Units)

(i) Long Term (91.3%) 697

(ii) Trading (5.4%) 41

(iii) Balancing Market (UI) (3.3%) 26

Total 764

The trading of Power in India*

(i) Bilateral through Trading 27

(ii) Bilateral Direct 6

(iii) Through Power Exchange 8

Total 41

*source: CERC

With the acceleration in the trading activities, the unutilized power, declared excess

of the order of 1000-1200 MW in the Eastern Region and North Eastern Region

has been fruitfully utilized in the other defi cit regions, through the inter-regional

transmission links.

The National Electricity Policy notifi ed in January 2006, mandates the creation of power

exchange to facilitate the development of a better price discovery mechanism for

buyers as well as sellers of electricity. The Central Electricity Regulatory Commission

has given permission to three companies out of which one Power Exchange viz.

National Power Exchange Limited was formed by NTPC Limited.

STRENGTH AND WEAKNESS

Your Company’s strength lies in its association with strong promoter viz. NTPC Limited

having formidable network, established rapport, credibility with potential buyers &

sellers and backed with professional manpower from NTPC.

Your Company is exposed to credit risk due to buyer’s inability to make timely

payment without any strong payment security mechanism in place.

OPPORTUNITIES AND THREATS

Ministry of Power, Government of India plans to enhance the existing inter-regional

power transfer capacity of 20750 MW to 37400 MW by 2012. This would provide

considerable opportunities for enhancement of trading volumes. Many Independent

Power Producers are setting up generation capacities reserved as merchant capacity

for sale in the market. This will provide opportunity to the Company for capturing

such merchant capacity for trading.

In recent times number of private traders has increased and they are trading power

without proper back-to-back payment security mechanism. In view of the above

your company is having the threat of non timely payment by buyers.

OUTLOOK

Your Company has been designated as one of the nodal agencies for cross border

trading of power with Bhutan and Bangladesh. Cross border trading of power

from Bhutan is expected to commence from 2013-14 with the commissioning of

new projects. The Company has also been designated as nodal agency for buying

power from solar power developers in India and selling to distribution utilities after

bundling with unallocated capacity from NTPC power stations. The business under

this segment is expected to commence from 2010-11 onwards.

Your Company is proposing to enter into Memorandum of Understanding with NTPC

Limited for selling the merchant capacity from Korba Super Thermal Power Station

and Farakka Super Thermal Power Station. This will not only enhance business volume

but also help in controlling price of power market.

Your Company was also selling Fly Ash from NTPC Project viz. National Capital Power

Project, Dadri since 2008-09 and new NTPC stations such as Kahalgaon Super Thermal

Power Station.

Your Company has invited Request for Qualifi cation for setting of cement grinding

units under joint ventures with cement manufacturers for twelve NTPC projects and

received very good response from cement manufacturers for all stations. In order

to enhance the trading business, your Company will take membership of National

Power Exchange Limited on start of operation of the exchnage.

RISKS AND CONCERNS

The fi xed trading margin of electricity traders limits revenues of trading companies.

Due to large number of private players in the market, your Company is also facing

competitive pressures. Your Company continues to focus on increasing its market

share in power trading and is taking appropriate initiatives to increase its business.

INTERNAL CONTROL

Your Company has adequate internal control systems and procedures in place

commensurate with the size and nature of its business. Your Company has adopted

the internal control system of its holding company viz. NTPC Limited. The authorities

vested in various levels are exercised within framework of appropriate checks and

balances. The effectiveness of all checks and balances and internal control systems

are reviewed during internal audit carried out by Internal Audit Department of NTPC

Limited. An independent internal audit is also carried out by experienced fi rms of

Chartered Accountants in close co-ordination with departments of the Company and

Internal Audit Department of NTPC Limited. The Internal Audit Reports are regularly

reviewed by the Audit Committee of the Board of Directors.

PERFORMANCE DURING THE YEAR

Operations

Your company has been issued license under category “I” which allows trading of

1000 million units and above every year without any upper limit.

The details of the power traded by the Company are as follows:

Fiscal 2010 Fiscal 2009

Million units

Purchase & sale of power 3208 2543

Sale of power under Power SWAP Arrangements 2341 2288

Total 5549 4831

During the fi nancial year 2009-10, your company traded 5549 million units of power

representing about 13.95% of nation’s total power trading volume. The overall

volume of power traded by Company has increased by 15% over last year.

In the past three years, your company has developed a good customer base and

has served over 65 customers including State Government/Private Power Utilities,

Captive Power Generators etc. in all fi ve regions in the country. Besides trading of

short-term surpluses of the various customers, your company has utilized over 300

MUs of the un-requisitioned surplus from NTPC stations.

Your Company had pioneered the innovative arrangement called Power SWAP

Arrangements which during the fi nancial year 2009-10, resulted in business of 2341

million units as compared to 2288 million units in fi nancial year 2008-09.

Financial Performance

The main revenue of your Company has been realized by trading of power of 5549

million units contributing to 67% of total revenue.

Rs. in Crore

2009-10 2008-09

Sale of Power 1829.49 1887.43

Less: Power Purchase 1816.96 1858.80

Power under SWAP Arrangements 8.94 8.66

Rebate on power purchase 35.89 36.59

Sale of Ash/ash products (Before 03.11.2009) 14.15 31.29

Sale of Ash/ash products (from 03.11.2009) 13.15

- -Less: Transfer to Fly Ash Utilization Fund 13.15

other Income 13.62 15.88

Total 85.13 121.05

During the fi nancial year 2009-10, the Company had traded 5549 million units as

compared to 4831 million units in fi nancial year 2008-09. In addition to power trading,

your Company is also trading fl y ash. During the fi nancial year 2009-10, the Company

had sold 759056 MT of fl y ash as compared to 634768 MT during fi nancial year 2008-

09. The Company had also traded 553 MT of Cenosphere during the fi nancial year

under review as compared to 432 MT of Cenosphere during fi nancial year 2008-09.


The Ministry of Environment and Forest, Government of India, through its notifi cation

dated November 3, 2009, directed that the amount collected from sale of fl y ash

and fl y ash based products should be kept in a separate account head and shall be

utilized only for development of infrastructure or facilities, promotion and facilitation

activities for use of fl y ash until 100 % fl y ash utilization level is achieved; thereafter

as long as 100% fl y ash utilization levels are maintained, the thermal power station

would be free to utilize the amount collected for other development programmes

also and in case, there is a reduction in the fl y ash utilization levels in the subsequent

year(s), the use of fi nancial return from fl y ash shall get restricted to development of

infrastructure or facilities and promotion or facilitation activities for fl y ash utilization

until 100% fl y ash utilization level is again achieved and maintained.

In view of the above notifi cation the Company had created fl y ash utilization fund

and transferred an amount of Rs. 10.62 Crore received from sale of fl y ash and

cenosphere for the period starting from November 3, 2009 (i.e. date of notifi cation)

to March 31, 2010, after adjusting amount of Rs. 2.53 Crore utilized for facilitating the

ash utilization activities during the above period of the year 2009-10.

The expenditure incurred on open access charges for the current year as well

as previous year is negligible. The Total operating expenses of the Company are as

follows:-

Rs. in Crore

2009-10 2008-09

Open access charges 0.01 -

Cost of Ash/Ash products 0.05 0.24

Rebate on power sale 31.35 36.46

Other operating expenses 10.53 8.56


During the fi nancial year 2009-10, the cost of Ash and ash products has been of the

order of Rs. 0.05 Crore. The rebate on power sale is Rs. 31.35 Crore as compared to

Rs. 36.46 Crore in the previous year.

The Total expenses including operating expenses of the Company are as follows:-

Rs. in Crore

2009-10 2008-09


Depreciation 0.07 0.07

Interest & Finance Charges 0.04 0.20

Total Expenses including operating expenses 42.05 45.53

The depreciation cost as compared to total expense is negligible since the fi xed

assets in the company are represented by furniture and fi xtures, EDP machines etc.

and the Gross Block was of the order of Rs. 0.61 Crore as on 31.3.2010.

Rs. in Crore

2009-10 2008-09

Profi t before tax and prior period adjustments 43.08 75.52

Prior period income/expenditure(net) - 0.28

Profi t before tax 43.08 75.24

Provision for current, deferred tax and fringe benefi t tax 14.69 25.71

Net profi t after tax 28.39 49.53

During the fi nancial year under review the Company has earned the net profi t after

tax of Rs. 28.39 Crore as compared to Rs. 49.53 Crore earned in fi nancial year 2008-

09. The Net Profi t of the Company has reduced due to stiff competition, margins

reduction to the Company and non-availability of SWAP security resulting in reduction

of cash surplus and consequential interest thereon. In view of the notifi cation issued

by Ministry of Environment and Forest, Government of India, the Company had

created fl y ash utilization fund and transferred an amount of Rs. 10.62 Crore received

from sale of fl y ash and cenosphere for the period starting from November 3, 2009

(i.e. date of notifi cation) to March 31, 2010, after adjusting an amount of Rs. 2.53

Crore utilized for facilitating the ash utilization activities during the above period

of the year 2009-10, resulting in reduction of revenue and net profi t to the

Company.

Dividend

Your Directors have recommended a dividend of Rs. 10 Crore @ Rs. 5 per equity

share on the face value of fully paid-up equity share capital of Rs. 10/- each, for the

fi nancial year 2009-10. The dividend shall be paid after your approval at this Annual

General meeting.

Reserves & Surplus

During the fi nancial year 2009-10 a sum of Rs.17 Crore have been added to General

Reserve.

Current Assets, Loans and Advances

The current assets, loans and advances at the end of the fi nancial year 2009-10

were Rs. 209.63 Crore as compared to Rs. 187.67 Crore in fi nancial year 2008-09

registering an increase of 11.70%.

Rs. in Crore

31.03.2010 31.3.2009

Inventories 0.06 0.16

Sundry Debtors 93.07 62.09

Cash and Bank balances 112.22 121.65

Other Current assets 1.82 3.43

Loans and Advances 2.46 0.34

Total Current Assets, Loans and Advances 209.63 187.67

The increase was mainly on account of increase in Sundry Debtors to Rs. 93.07 Crore

from Rs. 62.09 Crore. The major amount of debtors has now been recovered from

various buyers and balance amount would be realized soon.

Current Liabilities and ProvisionsDuring the fi nancial year 2009-10 Current Liabilities have decreased to Rs. 91.23 Crore

as compared to Rs. 98.52 Crore in the fi nancial year 2008-09, mainly on account of

decrease in sundry creditors for power purchase.

Rs. in Crore

31.03.2010 31.3.2009

Liabilities 91.23 98.52

Provisions 11.77 9.77

Total Liabilities and Provisions 103.00 108.29

The provisions for the fi nancial year under review have increased to Rs. 11.77 Crore as

compared to Rs. 9.77 Crore in previous fi nancial year, mainly on account of increase

in proposed fi nal dividend and tax thereon.

Cash Flow Statement Rs. in Crore

2009-10 2008-09

Opening Cash and cash equivalents 121.65 94.33

Net cash from operating activities (8.56) 23.70

Net cash used in investing activities 8.49 10.64

Net cash fl ow from fi nancing activities (9.36) (7.02)

Net Change in Cash and cash equivalents (9.43) 27.32

Closing cash and cash equivalents 112.22 121.65

The closing cash and cash equivalent for the fi nancial year ended March 31, 2010 has

decreased to Rs. 112.22 Crore from Rs. 121.65 Crore, mainly on account of repayment

of operating liabilities of power purchase pertaining to fi nancial year 2008-09.

Financial IndicatorsThe various performance indicators for the fi nancial year 2009-10 as compared to

fi nancial year 2008-09 are as under: -

Rs. in Crore

Description 2009-10 2008-09

A i) Capital employed 96.28 79.55

ii) Net worth 96.28 79.55

B i) Return on Capital Employed (PBT/CE) 44.74% 94.58%

ii) Return on net worth (PAT/NW) 29.49% 62.26%

C Dividend as % of Equity Capital (basic/average) 50 50

D Earning per share in Rs.(EPS) 14.20 24.76

The capital employed as well as net worth has increased due to addition of profi t

earned during the fi nancial year 2009-10. The EPS of the Company has reduced due

to decrease in profi tability mainly on account of creation of Ashutilization Fund and

lesser interest income. The reduced profi tability has resulted in reduction of Return

on Capital Employed and Return on Net Worth.

Human ResourcesAs on 31st March 2010, there were 40 employees posted on secondment basis from

holding company viz. NTPC Limited. To achieve the ambitious growth targets, the

company has drawn professional manpower from NTPC who have rich experience

in dealing in various technical, fi nancial and commercial issues. Continual training

and up-gradation of skills of employees is ensured through mandatory 7 mandays

of training every year.

CAUTIONARY STATEMENTStatements in the Management Discussion and Analysis describes the Company’s

objectives, projections, estimates, expectations may be “forward-looking

statements” within the meaning of applicable laws and regulations. Actual results

may vary materially from those expressed or implied. Important factors that could

make a difference to the Company’s operations include economic conditions

affecting demand/supply and price conditions in the markets in which the Company

operates, changes in Government regulations & policies, tax laws and other statutes

and incidental factors.





NTPC VIDYUT VYAPAR NIGAM LTD

ACCOUNTING POLICIES






2. USE OF ESTIMATES

The preparation of fi nancial statements requires estimates and assumptions

that affect the reported amount of assets, liabilities, revenue and expenses

during the reporting period. Although such estimates and assumptions are

made on a reasonable and prudent basis taking into account all available

information, actual results could differ from these estimates & assumptions

and such differences are recognized in the period in which the results are

crystallized.

3. FIXED ASSETS

3.1. Fixed Assets are carried at historical cost less accumulated depreciation.

3.2. Intangible assets are stated at their cost of acquisition less accumulated

amortisation.

4. FOREIGN CURRENCY TRANSACTIONS

4.1. Foreign currency transactions are initially recorded at the rates of

exchange ruling at the date of transaction.

4.2. At the balance sheet date, foreign currency monetary items are reported

using the closing rate.

5. INVENTORIES

5.1. Inventories are valued at the lower of cost, determined on weighted

average basis, and net realizable value.

5.2. The diminution in value of obsolete / unserviceable items is ascertained

on review and provided for.


6.1. INCOME RECOGNITION

6.1.1. Sale of energy and fl y ash/ ash products are accounted for based on

rates agreed with the customers.

6.1.2. The surcharge on late payment/overdue sundry debtors for sale of

energy is recognized when no signifi cant uncertainty as to measurability

or collectability exists.

Annex-II to Directors’ Report

PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 217 (2A) OF THE COMPANIES ACT, 1956:


Remuneration(in Rs.)

Qualifi cation Date of commencement of employment

Exp. (yrs.)

Age (yrs.)

Last employment held

1. 2. 3. 4. 5. 6. 7. 8.

Employed for whole of the year

Ashok Bhatnagar DGM-Ash Business 24,91,219 M.Sc. 04.08.1984 25 50 H F W & E Lab. Haryana Govt.

Amarinder Kumar Maggu

AGM-Business Development

26,74,721 B.Sc.(Mech.Eng), M.Tech 16.11.1978 31 53 NTPC Limited

Ashok Kumar Goyal CEO 27,47,356 BE(Mech.Engg.), MBA 29.12.1982 27 53 NTPC Limited

Amitabh Saxena DGM- Business Development

24,11,040 B.E. (Electrical Engg.) 30.06.1987 22 49 MP Electricity Board

Debabrata Kundu DGM- System Operation 28,13,829 B.E.(Mech. Engg.) 28.02.1984 26 52 Babcock & Wilcox of India Limited

Dhananjay Kumar Singh DGM- Ash Business 27,55,547 B.Sc. (Electrical Engg.) 11.12.1986 23 52 Bihar SEB

Indranil Mitra DGM-HR 25,78,746 M.Sc., PG Diploma 24.12.1982 27 52 NTPC Limited

Krishna Sankar Bandyopadhyay

DGM-Business Develoment

26,77,228 BE(Electrical), LL.B, MBA 07.09.1983 26 49 NTPC Limited

Lekh Raj DGM-Finance 24,75,053 M.Com, CA 02.07.1984 25 50 NTPC Limited

Rajesh Kumar DGM- Ash Business 25,43,702 M.Sc, M.Tech 04.08.1984 25 50 NTPC Limited

Rakesh Kumar AGM- Ash Business 24,06,130 B.Sc., B.Tech (Electrical) 05.02.1977 33 56 NTPC Limited

Robin Mazumdar AGM-Business Development

26,45,962 B.Sc., B.E(Electrical Engg.), MBA

19.10.1984 25 57 R.S.E.B

Vijay Gulati AGM- System Operation 27,34,508 B.Sc(Electrical Engg.),MBA, LL.B

25.07.1984 25 53 BHEL Limited

Notes:

1. The employee mentioned above is posted on secondment basis from NTPC Limited and is not related to any Directors of the Company.2. Remuneration includes salary & allowances and perks, permissible under holding Company’s rules.




6.2. EXPENDITURE

6.2.1. Depreciation is charged on straight line method at the rates specifi ed

in Schedule XIV of the Companies Act, 1956 except for the following


a) Personal Computers and Laptops including peripherals 19.00%

b) Photocopiers and Fax Machines 19.00%

c) Air conditioners, Water coolers and Refrigerators 08.00%

6.2.2. Depreciation on additions to/ deductions from fi xed assets during the



6.2.3. Assets costing up to Rs.5000/- are fully depreciated in the year of

acquisition.

6.2.4. Cost of software recognized as intangible asset, is amortized on straight

line method over a period of legal right to use or 3 years, whichever is

earlier.

6.2.5. Expenses on ex-gratia payments under voluntary retirement scheme,

training & recruitment and research and development are charged to

revenue in the year incurred.

6.2.6. Prepaid expenses and prior period expenses/income of items of

Rs.1,00,000/- and below are charged to natural heads of accounts.

6.2.7. The liabilities towards employee benefi ts are ascertained annually by the

Holding Company i.e. NTPC Ltd. on actuarial valuation at the year end.

The company provides for such employee benefi ts as apportioned by

the Holding Company.


A provision is recognized when the company has a present obligation as a






the management/ independent experts. These are reviewed at each balance


8. CASH FLOW STATEMENT Cash fl ow statement is prepared in accordance with the indirect method

prescribed in Accounting Standard (AS) 3 on ‘Cash Flow Statements’.


NTPC VIDYUT VYAPAR NIGAM LIMITED

BALANCE SHEET AS AT 31st MARCH 2010

(Rs.)

SCHEDULE NO. 31.03.2010 31.03.2009

SOURCES OF FUNDS

SHAREHOLDERS’ FUNDS

Share Capital 1 200000000 200000000

Reserves and Surplus 2 762845863 595530224

Sub-total (Shareholders’ funds) 962845863 795530224

FLY ASH UTILIZATION FUND 3 106227627 -

DEFERRED TAX LIABILITY (Net) 161285 135636

TOTAL 1069234775 795665860

APPLICATION OF FUNDS

FIXED ASSETS 4

Gross Block 6110716 4291433

Less: Depreciation 3164013 2517464

Net Block 2946703 1773969

CURRENT ASSETS, LOANS AND ADVANCES

Inventories 5 611296 1657268

Sundry Debtors 6 930665567 620933095

Cash and Bank balances 7 1122160031 1216491402

Other Current Assets 8 18226374 34306486

Loans and Advances 9 24652547 3409664

Sub-total (Current Assets, Loans and Advances) 2096315815 1876797915

LESS: CURRENT LIABILITIES AND PROVISIONS

Liabilities 10 912362491 985216776

Provisions 11 117665252 97689248

Sub-total (Current Liabilities and Provisions) 1030027743 1082906024

Net Current Assets 1066288072 793891891

TOTAL 1069234775 795665860

Contingent liabilities 12

Notes on accounts 20

Schedules 1 to 20 and accounting policies form an integral part of accounts.

For and on behalf of Board of Directors


For N.K.Jain Mittal & Co.


(N.K.Gupta) (Nitin Mehra) (A.K.Singhal) (R.S.Sharma)

Partner Company Secretary Director Chairman

M.No.81775

Place: New Delhi

Dated: 05.05.2010


PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2010

(Rs.)

SCHEDULE NO. Current Year Previous Year

INCOME

Sales 13 356244155 685854957

Rebate on power purchase 358937862 365924695

Other income 14 136156532 158756814

Total 851338549 1210536466

EXPENDITURE

Open access charges 130000 15000

Cost of fl y ash/ash products 15 546606 2399966

Employees’ remuneration and

benefi ts 16 65555706 59269826

Administration & other expenses 17 39707385 26294854

Rebate on power sale 313522931 364662147


Interest and fi nance charges 18 408603 2023862

Total 420545691 455370100

Profi t before Tax and Prior Period Adjustments 430792858 755166366

Prior Period income/expenditure

(net) 19 - 2781320

Profi t before tax 430792858 752385046

Provision for :

a) Current tax 146842820 256525657

b) Deferred tax 25649 87016

c) Fringe Benefi t tax - 514633

Total (a+b+c) 146868469 257127306

Profi t after tax 283924389 495257740

Balance brought forward 10646268 12383528

Balance available for appropriation 294570657 507641268

Transfer to General Reserve 170000000 380000000

Dividend

- Interim - 20000000

- Final-proposed 100000000 80000000

Tax on Dividend

- Interim - 3399000

- Final 16608750 13596000

Balance carried to Balance Sheet 7961907 10646268

Earning Per Share (Equity shares, face value

Rs.10/- each)-Basic and diluted 14.20 24.76

Notes on accounts 20

Schedules 1 to 20 and accounting policies form an integral part of accounts.







M.No.81775

Place: New Delhi

Dated:05.05.2010

SCHEDULES FORMING PART OF ACCOUNTS

(Rs.)

Schedule 1 31.03.2010 31.03.2009

SHARE CAPITAL

AUTHORISED

2,00,00,000 equity shares of Rs. 10/-each

(Previous Year 2,00,00,000 equity shares of Rs.

10/-each) 200000000 200000000

ISSUED, SUBSCRIBED AND PAID UP

2,00,00,000 equity shares of Rs. 10/-each fully

paid-up (Previous year 2,00,00,000 equity shares

of Rs. 10/- each fully paid up) All shares are held

by the holding company, NTPC Limited and its’

nominees. 200000000 200000000

(Rs.)

Schedule 2 31.03.2010 31.03.2009

RESERVES AND SURPLUS

General Reserve


Add: Transfer from Profi t & Loss Account 170000000 380000000

754883956 584883956

Surplus in Profi t & Loss Account 7961907 10646268

Total 762845863 595530224

Schedule 3

FLY ASH UTILIZATION FUND

As per last Balance Sheet - -

Add: Transfer from Sales (Schedule 13) 131515160 -

Less: Utilized during the year 25287533 -

Total 106227627 -


Schedule 4

FIXED ASSETS (Rs.)

Gross Block Depreciation Net Block

As at 1.04.2009 Additions

Deductions/ Adjustments

As at 31.03.10

As at 1.04.2009

For the year

Deductions/ Adjustments

upto 31.03.2010

As at 31.03.2010

As at 31.03.2009

TANGIBLE ASSETS

Plant & Machinery - 1195000 - 1195000 - 37842 - 37842 1157158 -

Furniture,fi xtures & other offi ce

equipment 1316494 86339 29380 1373453 289151 185459 27911 446699 926754 1027343

EDP & WP machines 2733861 562614 (4710) 3301185 2124284 382635 - 2506919 794266 609577

INTANGIBLE ASSETSSoftware 241078 - - 241078 104029 68524 - 172553 68525 137049

Total 4291433 1843953 24670 6110716 2517464 674460 27911 3164013 2946703 1773969

Previous year 3393165 990466 92198 4291433 1872870 704445 59851 2517464 1773969 1520295

Deductions/Adjustments from Gross Block includes Current Year Preious Year

Disposal/Retirement of assets 29380 -

Assets capitalised with retrospective effect (4710) -

Others - 92198

24670 92198

Deductions/Adjustments from Depreciation includes

Disposal/Retirement of assets 27911 -

Others - 59851

27911 59851

Depreciation for the year is allocated as given below

Charged to Profi t & Loss account 674460 704445

(Rs.)

Schedule 5 31.03.2010 31.03.2009

INVENTORIES

(Valuation as per Accounting Policy No.5)

Cenosphere 611296 1657268

Schedule 6

SUNDRY DEBTORS

(Considered good, unless otherwise stated)

Debts outstanding over six months

Unsecured - -

Other debts

Unsecured 930665567 620933095

Total 930665567 620933095

Schedule 7

CASH & BANK BALANCES

Balances with scheduled banks

-Current Account 2654668 3905402

-Term Deposit Account* 1119505363 1212586000

Total 1122160031 1216491402

* Rs. 45,000/- (Previous year Rs.45,000/-)

deposited as security with Sales Tax Authority

Schedule 8

OTHER CURRENT ASSETS

Interest accrued on Term Deposits 18226374 34306486

Schedule 9

LOANS AND ADVANCES

(Considered good, unless otherwise stated)

ADVANCES

(Recoverable in cash or in kind

or for value to be received)

RLDCs

Unsecured 1851503 5000

Advance Income/ Fringe Benefi t Tax and tax

deducted at source 540647668 393049214

Less: Provision for taxation 536976624 390674550

3671044 2374664

DEPOSITS

Deposits with suppliers and others 19130000 1030000

Total 24652547 3409664

(Rs.)

Schedule 10 31.03.2010 31.03.2009

CURRENT LIABILITIES

Sundry Creditors


Other than Micro and Small Enterprises 782731049 609015260

Holding Company -NTPC Limited 85024537 20358390

Deposits, retention money from buyers 21034153 341085711

888789739 970459361

Advances from customers and others 21140610 14444136

Other liabilities 2432142 313279

Total 912362491 985216776

Schedule 11PROVISIONSIncome/ Fringe Benefi t Tax

As per last balance sheet - 6822


Amount adjusted during the year (390133804) (131756370)

Less: Set off against taxes paid 536976624 390674550

- -Proposed dividend

As per last balance sheet 80000000 40000000



100000000 80000000Tax on proposed dividend



Amounts paid during the year 13596000 6798000

16608750 13596000Employee benefi ts



Amounts reversed during the year 1699131 -

Amounts paid during the year 1356375 2258745

1056502 4093248

Total 117665252 97689248

Schedule 12

CONTINGENT LIABILITIESClaims against the company not acknowledged

as debts in respect of:

Disputed open access charges - 15600385

Disputed energy charges 13791836 108219634

Others - 200000

Total 13791836 124020019


(Rs.)Schedule 13 Current Year Previous YearSALESPower 18294915737 18874348150Less: Power Purchase 18169623104 18588043014

125292633 286305136Power under swap arrangements 89419146 86551229

214711779 372856365Fly Ash 140722123 307878924Cenosphere 810253 5119668(Before 03.11.2009) 141532376 312998592Fly Ash 125600820Cenosphere 5914340(From 03.11.2009) 131515160Less: Transfered to Fly Ash Utilization Fund (Schedule 3)

131515160- -

Total 356244155 685854957

Schedule 14OTHER INCOMEInterest (Gross) (Tax deducted at source Rs.1,16,02,442/-,Previous year Rs.3,37,54,646/-) 82303612 156447261Interest/surcharge received from customers 314168 2309208Security deposit forfeited 53534909 -Miscellaneous income 3262 345Gain on Asset Sale 581 -Total 136156532 158756814

Schedule 15COST OF FLY ASH/ASH PRODUCTS --Fly Ash 447203 1505661 --Cenosphere 1454806 894305

1902009 2399966Less: Transferred to Fly Ash Utilization Fund (Schedule 3) --Fly Ash 26472 --Cenosphere 1328931 1355403 -Total 546606 2399966Schedule 16EMPLOYEES’ REMUNERATION AND BENEFITSSalaries, wages, bonus, allowances & benefi ts 65125850 48403919Contribution to provident and other funds 5900404 4817455Welfare expenses 3955719 6048452

74981973 59269826Less: Transferred to Fly Ash Utilization Fund (Schedule 3) 9426267 -Total 65555706 59269826Schedule 17ADMINISTRATION & OTHER EXPENSESPower Charges 887100 550635 Rent 26990857 11019029 Repairs & Maintenance -Offi ce 2956989 882675 -Others 100433 95077

3057422 977752 Rates and taxes 3005000 2141100 Training & recruitment expenses 12800 336468 Communication expenses 639086 721691 Travelling expenses 3780226 3157360 Tender expenses 2699405 1981004Less: Receipt from sale of tenders 280000 270000

2419405 1711004 Payment to Auditors 96513 79328 Advertisement and publicity 10000 1282874 Entertainment expenses 452930 592853 Brokerage & commission 226071 172070 Ash utilisation & marketing expenses 8008339 43820 Books and periodicals 26494 19969 Professional charges and consultancy fee 3077468 1658504 Legal expenses 61482 19100 EDP hire and other charges 62429 88144 Printing and stationery 399486 191537 Miscellaneous expenses 1000140 1531616

54213248 26294854 Less: Transferred to Fly Ash Utilization Fund (Schedule 3) 14505863 -

Total 39707385 26294854

(Rs.)

Schedule 18 Current Year Previous Year

INTEREST AND FINANCE CHARGES

Interest on:

Cash credit 70672 -

Others 1210 1882750

71882 1882750

Finance Charges:

Bank charges 336721 141112

Total 408603 2023862

Schedule 19

PRIOR PERIOD INCOME/EXPENDITURE (NET)

EXPENDITURE

Salary, wages, bonus, allowances & benefi ts - 2781320

SCHEDULE 20

NOTES ON ACCOUNTS

1. Balances shown under debtors, advances and creditors in so far as these have not been since realized/discharged or adjusted are subject to confi rmation/reconciliation and consequential adjustment, if any.

2. Sales and Purchases of energy are recognized on the basis of monthly Regional Energy Accounts (REA) issued by the concerned Regional Power Committee (RPC).

3. Sale of power under SWAP arrangements is billed by margin only to buyers. During the year, revenue on account of above has been recognized for Rs.8,94,19,146/- (previous year Rs.8,65,51,229/-) in schedule 13.

4. The Company sells fl y ash and cenosphere given free of cost by its holding Company NTPC Limited. Consequent to the notifi cation dated 03.11.2009, issued by Ministry of Environment and Forest (MoEF), Government of India, the Company has created the Fly Ash Utilization Fund amounting to Rs.13,15,15,160/- being the amount collected from sale of fl y ash and Cenosphere for the period 03.11.2009 to 31.03.2010. In compliance of the above said notifi cation the Company has utilized Rs. 2,52,87,533/- being the direct/indirect expenses relating to the sale of fl y ash and Cenosphere for the period from 03.11.2009 to 31.03.2010 from the Fly Ash Utilization Fund leaving a balance of Rs. 10,62,27,627/- as at 31.03.2010.

5. Sale of Power includes compensation received of Rs.52,50,59,097/-(previous year Rs.20,39,54,025/-) due to lesser drawl of power by the buyers.

6. Power purchase includes compensation payment of Rs.52,49,34,604/-(previous year Rs.1,71,51,997/-) due to lesser drawl of power by the Company.

7. Employees’ remuneration and benefi ts are net of Rs. (-)8,67,511/- (previous year Rs.34,21,998/-) in respect of gratuity, leave, post retirement medical facility, transfer travelling allowance on retirement / death, long service award to employees, farewell gift on retirement and family economic rehabilitation scheme as apportioned by the Holding Company i.e. NTPC Limited on actuarial valuation basis at the end of the year.

8. All the employees of the Company are on secondment basis from its Holding Company i.e. NTPC Limited.

9. Segment information a) Business Segments: The Company’s principal businesses are trading of energy and trading of

fl y ash/ ash products. b) Segment Revenue and Expense: Revenue directly attributable to the segments is considered as Segment

Revenue. Expenses directly attributable to the segments and common expenses allocated on a reasonable basis are considered as Segment Expenses.

c) Segment Assets and Liabilities: Segment assets include all operating assets in respective segment

comprising of net fi xed assets and current assets, loans and advances. Segment liabilities include operating liabilities and provisions.

(Rs.)

Particulars

Business Segments Total

Energy Trading Fly Ash/Ash products trading

Current Year Previous YearCurrent Year Previous Year Current Year Previous Year

REVENUE

Sales 214711779 372856365 141532376 312998592 356244155 685854957

Other Income 51820650 2309208 2031689 335 53852339 2309543

Total 266532429 375165573 143564065 312998927 410096494 688164500

Segment Results 227835995 315299945 120691722 282508898 348527717 597808843

Unallocated Corporate

Interest and Other Income 82304193 156447271

Unallocated Corporate

expenses,interest and

fi nance charges 39052 1871068

Income Taxes(Net) 146868469 257127306

Profi t after Tax 283924389 495257740


(Rs.)

Particulars

Business Segments Total

Energy Trading Fly Ash/Ash products trading

Current Year Previous YearCurrent Year Previous Year Current Year Previous Year

OTHER INFORMATION

Segment assets 1434957896 1653109469 324641296 188781265 1759599192 1841890734

Unallocated Corporate and

other assets 339663326 36681150

Total Assets 2099262518 1878571884

Segment Liabilities 842265236 943333891 174949242 45662854 1017214478 988996745

Unallocated Corporate and

other liabilities 119202177 94044915

Total Liabilities 1136416655 1083041660


Non Cash Expenses other

than Depreciation

Capital Expenditure 1847194 958119

d) The operations of the Company are mainly carried out within the country and therefore, geographical segments are inapplicable.

10. Disclosure regarding leases

Expenses on operating leases of the premises for residential use of the employees amounting to Rs.83,16,090/- (Previous year Rs.28,65,578/-) are included in Schedule 16-“Employees remuneration and benefi ts”. Similarly, lease payments in respect of premises for offi ces are shown in Rent in Schedule 17-“Administration and Other Expenses”. The signifi cant leasing arrangements for such leases are entered into by the Company and its Holding Company i.e. NTPC Limited and are not non-cancelable.

11. Earnings per share

The elements considered for calculation of Earning per share (Basic and Diluted) are as under:


Net Profi t/(Loss) after Tax used as

numerator (Rupees) 28,39,24,389 49,52,57,740

Weighted average number of equity

shares used as denominator 2,00,00,000 2,00,00,000

Earning/(Loss) per share (Rupees) 14.20 24.76

Face value per share (Rupees) 10 10

12. In compliance of Accounting Standard –22 on “Accounting for taxes on Income” issued by the Institute of Chartered Accountants of India, the item wise details of Deferred tax liability (net) are as under.

(Rs.)

31.03.2010 31.03.2009

Deferred Tax Liability

i)Difference of book Depreciation and tax Depreciation 1,61,285 1,35,636

Less: Deferred Tax Assets

i)Provisions Disallowed for Tax Purposes NIL NIL

Deferred tax Liability (Net) 1,61,285 1,35,636

The net increase in deferred tax liability of Rs.25, 649/- (previous year increase Rs.87,016/-) has been debited to Profi t & Loss Account.

13. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs.NIL (previous year Rs.4,80,189/-).

14. Payment to the Statutory Auditors ( Schedule 17) (Rs.)


Audit Fees 60,000 40,000

Tax Audit Fees 10,000 9,000

Certifi cation Fees 17,500 22,500

Reimbursements

-Traveling Expenses

-Service Tax

NIL9,013

NIL

7,828

96,513 79,328

15. Managerial remuneration paid/payable to Chief Executive Offi cer (Rs.)




funds including gratuity & group insurance 1,96,343 1,93,220

Other benefi ts 1,15,304 85,212

Directors’ fees NIL NIL

The provisions for/contribution of gratuity, leave encashment and post-retirement medical facilities are ascertained on actuarial valuation by the Holding Company i.e. NTPC Ltd. and hence not ascertainable separately.

16. Quantitative information:


a) Trading of energy (MUs)

Power 3208 2543

Power Under Swap Arrangements 2341 2288

b) Trading of Fly Ash / Cenosphere (MTs)

Fly Ash 759056 634768

Cenosphere 553 432

17. Expenditure in foreign currency (Rs.)

a) Training & recruitment expenses NIL 63,493

b) Traveling Expenses NIL 2,46,870

18. Previous year fi gures have been regrouped/ rearranged wherever necessary.

19. Information pursuant to Part IV of Schedule VI of the Companies Act, 1956.




Date Month Year




N I L N I L


N I L N I L



2 0 9 9 2 6 3 2 0 9 9 2 6 3

Source of Funds

Paid-up Capital Reserves & surplus

2 0 0 0 0 0 7 6 2 8 4 6

Fly Ash Utilization Fund Secured Loans

1 0 6 2 2 8 N I L

Unsecured Loans Deferred Tax Liabilities

N I L 1 6 1



2 9 4 7 N I L

Net Current Assets Misc. Expenditure

1 0 6 6 2 8 8 N I L

Accumulated Losses

N I L


Turnover Total Expenditure

8 5 1 3 3 9 4 2 0 5 4 6

Profi t/Loss before Tax Profi t after Tax

4 3 0 7 9 3 2 8 3 9 2 4


1 4 . 2 0 5 0



Product Description: Item Code No.

TRADING OF ENERGY N A

TRADING OF FLY ASH AND ASH BASED PRODUCTS N A

As per our report of even date For and on behalf of Board of Directors





M.No.81775

Place: New Delhi

Dated:05.05.2010


CASH FLOW STATEMENT FOR THE PERIOD ENDED 31ST MARCH 2010

(Rs.)



Net profi t before tax and Prior Period Adjustments 430792858 755166366

Adjustment for:


Interest charges - 1871068

Interest income (82303612) (156447261)

Gain on Sale of Assets (581) -

Prior period adjustments

(Net) - (2781320)

(81629733) (156653068)

Operating Profi t before Working Capital Changes 349163125 598513298

Adjustment for:

Trade and other receivables (309732472) (354260411)

Inventories 1045972 (73925)

Trade payable and other

liabilities (75891031) 217138615

Loans and advances (19946503) 2966500

Increase in Fly Ash

Utilization Fund 106227627 -

(298296407) (134229221)

Cash generated from operations 50866718 464284077

Direct taxes paid (136536758) (227262699)

Net Cash from Operating Activities-A (85670040) 237021378


Purchase of fi xed assets (1848663) (990466)

Disposal of fi xed assets 2050 32347

Interest on Investments

Received 98383724 141357382

Income Tax on Interest on

Investments (11602442) (34030145)

Net Cash used in Investing Activities -B 84934669 106369118


Dividend paid (80000000) (60000000)

Tax on dividend (13596000) (10197000)

Net Cash fl ow from Financing Activities-C (93596000) (70197000)

Net Increase/(Decrease) in Cash and Cash equivalents (A+B+C) (94331371) 273193496

Cash and Cash equivalents (Opening balance) * 1216491402 943297906

Cash and Cash equivalents (Closing balance)* 1122160031 1216491402

*NOTE: Cash and Cash Equivalents consist of Cash in Hand & Balance with Banks.







M.No.81775

Place: New Delhi

Dated:05.05.2010

AUDITOR’S REPORTTo the Members of


1. We have audited the attached Balance Sheet of NTPC VIDYUT VYAPAR NIGAM LIMITED as at 31st March 2010, the Profi t and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These fi nancial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these fi nancial statements based on our audit.

2. We conducted our audit in accordance with Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used & signifi cant estimates made by the management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) order, 2003 (as amended) issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specifi ed in paragraphs 4 & 5 of the said order.

4. Further to our comments in the annexure referred to in para 3 above, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;

c. The Balance Sheet, Profi t and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. In our opinion, the Balance Sheet, Profi t and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e. Being a Government Company, pursuant to the Notifi cation no. GSR 829 (E) dated 21.10.2003 issued by Government of India, provisions of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956, are not applicable to the Company;

f. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read with the Accounting Policies and Notes thereon in Schedule 20, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of Balance Sheet, of the state of affairs of the company as at 31st March, 2010,

ii. in the case of Profi t and Loss Account, of the profi t for the year ended on that date, and

iii. in the case of Cash Flow Statement, of the cash fl ows for the year ended on that date.

For N.K. Jain Mittal & Co.Chartered Accountants

(N.K.Gupta) Partner

M.No.81775Place: New DelhiDated: 05.05.2010

ANNEXURE TO THE AUDITOR’S REPORT

Statement referred to in paragraph (3) of our report of even date to the members of NTPC VIDYUT VYAPAR NIGAM LIMITED on the accounts for the year ended 31st March 2010.

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fi xed assets.

(b) Physical verifi cation of fi xed assets has been carried out by an internal committee, appointed for the purpose, which in our opinion is considered reasonable having regard to the size and nature of its assets. No material discrepancies were noticed on such verifi cation.

(c) Substantial part of fi xed assets has not been disposed off during the year.

(ii) (a) The inventory has been physically verifi ed by the management at reasonable intervals.


(b) The procedures of physical verifi cation of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. No material discrepancies were noticed on physical verifi cation of inventories.

(iii) (a) The company has not granted any loans secured or unsecured to any company, fi rm or other party listed in the register maintained under section 301 of the Companies Act, 1956.

In view of clause (iii) (a) above, the clause (iii) (b), (iii) (c) and (iii) (d) are not applicable.

(e) The company has not taken any loans, secured or unsecured from companies, fi rms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

In view of the clause (iii) (e) above, the clause (iii) (f) and (iii) (g) are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for purchase of inventory and fi xed assets and for the sale of goods and services. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control system.

(v) (a) According to the information and explanation given to us, during the year under audit there have been no contracts or arrangements which need to be entered in the register maintained under section 301 of the companies Act, 1956.

(b) In view of clause (v) (a) above, the clause (v) (b) is not applicable.

(vi) The company has not accepted deposits from the public.

(vii) In our opinion, the company has an Internal Audit system commensurate with the size and nature of its business.

(viii) The Central Government has not prescribed maintenance of cost accounts and records under section 209 (1) (d) of the Companies Act, 1956.

(ix) (a) The employees of NVVN are on secondment basis from its holding company i.e. NTPC Ltd. The holding company is regular in depositing undisputed statutory dues including dues like Provident Fund, Service Tax etc. with appropriate authorities. Moreover, Sales Tax is being deposited by the company. Further, Income Tax is being directly deposited by the company w.e.f. July 2009. According to the information and explanations given to us, there are no undisputed Provident Fund, Income Tax, Sales Tax and Service Tax etc. in arrear as at 31.03.2010 for a period of more than six month from the date they became payable.

(b) In view of clause (ix) (a) above, the clause (ix) (b) is not applicable.

(x) The company has no accumulated losses and has not incurred cash losses during the fi nancial year covered by our audit and the immediately preceding fi nancial year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to fi nancial institutions, banks or debenture holders.

(xii) According to the information and explanations given to us, company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The company is not a chit fund or a nidhi/ mutual benefi t fund/ society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

(xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies

(Auditor’s Report) Order, 2003 are not applicable to the company.

(xv) The company has not given any guarantees for loans taken by others from banks or fi nancial institutions.

(xvi) The company does not carry any term loans.

(xvii) According to the information and explanations given to us and on overall examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long –term investment.

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares during the year.

(xix) According to the information and explanations given to us, the company has not issued debentures during the year, hence no requirement of creation of security or charge.

(xx) According to the information and explanations given to us, the company has not raised any money by public issue during the year.

(xxi) According to the information and explanations given to us, no fraud has been committed to or by the company during the year.

For N.K. Jain Mittal & Co.Chartered Accountants

(N.K.Gupta) Partner

M.No.81775Place: New DelhiDated: 05.05.2010


SECTION 619 (4) OF THE COMPANIES ACT, 1956, ON THE ACCOUNTS OF NTPC

VIDYUT VYAPAR NIGAM LIMITED, NEW DELHI FOR THE YEAR ENDED, 31 MARCH, 2010

The preparation of fi nancial statements of NTPC Vidyut Vyapar Nigam Limited, New Delhi, for the year ended 31 March 2010 in accordance with the fi nancial reporting framework prescribed under the Companies Act, 1956, is the responsibility of the management of the Company. The statutory auditors appointed by the Comptroller and Auditors General of India under Section 619(2) of the Companies Act, 1956 are responsible for expressing opinion on these fi nancial statements under Section 227 of the Companies Act, 1956, based on independent audit in accordance with the auditing and assurance standards prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 5 May 2010.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 619(3) (b) of the Companies Act, 1956 of the fi nancial statements of NTPC Vidyut Vyapar Nigam Limited, New Delhi for the year ended 31 March 2010. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my audit nothing signifi cant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors’ report under Section 619(4) of the Companies Act, 1956

Place: New Delhi

Dated: 31st May, 2010



(M. K. Biswas)

Principal Director of Commercial Audit &



PIPAVAV POWER DEVELOPMENT COMPANY LIMITED


DIRECTORS’ REPORT

To,

The Members,

Your Directors have pleasure in presenting the 9th Annual Report on the performance

of the Company for the fi nancial year ended 31st March, 2010 together with Audited

Accounts and the Auditors ̀Report thereon.

OPERATIONAL REVIEW

Your Company was incorporated on 20th December, 2001 as a wholly owned

subsidiary of NTPC Limited (NTPC) under the Presidential Directive with a view to

develop infrastructure of Pipavav Power Project in the State of Gujarat. NTPC also paid

a sum of Rs. 6.05 crore to Gujarat Power Corporation Limited (GPCL) for acquisition of

required land for the project. Subsequently with a view to develop Pipavav Power

Project through a 50:50 equity participation by NTPC and GPCL under Joint Venture, a

Memorandum of Understanding ( MOU) was signed by NTPC with GPCL and Gujarat

Electricity Board on 20th February, 2004.

Subsequently, Ministry of Power, Govt. of India conveyed the approval of competent

authority to allow NTPC Limited to dissociate from Pipavav Power Project (1000MW) in view

of Government of Gujarat’s decision to develop the project with another strategic partner.

Accordingly, process was started for settlement of dues of NTPC with GPCL/

Government of Gujarat and all the claims with GPCL/ Government of Gujarat

have been amicably settled between NTPC and GPCL except a nominal claim of

approximately Rs. 21 Lac being the amount of interest.

In line with the DPE guidelines, NTPC had also approached Ministry of Power, Govt.

of India for its approval for winding up of the Company. Ministry of Power, Govt. of

India had issued a Presidential Directive dated July 3, 2009 to NTPC conveying the

approval of Government to permit NTPC for winding up of the Company pending fi nal

settlement of claims with Gujarat power Corporation Limited/Government of Gujarat.

Further, GPCL has paid a sum of Rs. 20,34,534/- to NTPC during the fi nancial year

2009-10 towards balance of expenses. The said amount has been accounted for in

the books of account of NTPC.

Ministry of Power, GOI, through its further Presidential Directive dated April 15,

2010 had conveyed the approval of GOI to permit NTPC for winding up of PPDCL

through striking off the name of PPDCL under section 560 of the Companies Act,

1956. Accordingly an application for winding up of PPDCL under section 560 of the

Companies Act, 1956 had already been fi led on 29th April, 2010 with Registrar of

Companies, NCT of Delhi & Haryana.

FINANCIAL REVIEW

During the year, the Company has incurred Rs. 9,141/- towards various expenses like

fi ling fees, professional fees, audit fees and other petty expenses. Further, in order

to prepare the NIL balance sheet (i.e. only Paid up share capital and corresponding

Profi t & Loss Account in the Balance Sheet) a liability of Rs. 22,611/- payable to

holding company i.e. NTPC Limited had been credited to Profi t & Loss Account.

NTPC shall subsequently recover the same from GPCL as per the settlement already

arrived at between NTPC and GPCL.

Due to the above, a profi t amount of Rs. 13,470/- had been carried forward to

Balance Sheet as against loss of Rs. 21,795/- incurred last year.

FIXED DEPOSITS


31st March, 2010.

AUDITORS’ REPORT

The Comptroller and Auditor General of India (C&AG) has appointed M/s .K.K. Jain

& Company, Chartered Accountants as Statutory Auditor of the Company for the

fi nancial year 2009-10. There are no adverse comments, observation or reservation

in the auditor’s report on the accounts of the Company except that the Company is

not a going concern.

COMPTROLLER & AUDITOR GENERAL REVIEW:

The Comptroller and Auditor General of India (C&AG) vide letter dated 11th May,

2010 has conveyed its decision not to review the report of the statutory auditors’ on

the accounts of the Company for the year ended 31st March, 2010 and as such has

no comments to make under section 619(4) of the Companies Act, 1956. As advised

by C&AG, review report of C&AG and comments if any, along with management

replies thereto are to be placed with report of Statutory Auditors. Accordingly, letter

of NIL comments received form C&AG is placed with report of Statutory Auditors.

SECRETARIAL COMPLIANCE REPORT:

The Company has appointed M/s. A. Kaushal & Associates, Company Secretaries

for Secretarial Audit and for obtaining the Certifi cate of compliance under Section

383A(1) of the Companies Act, 1956 for the fi nancial year 2009-10. The Compliance

Certifi cate is attached as Annexure-I.

PARTICULARS OF EMPLOYES:

Since, the Company has no employee, the particulars prescribed under section

217(2A) of the Companies Act 1956 read with the Companies (Particulars of

Employees) Rules, 1975 are not applicable.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING & OUTGO:

Since no activity was carried out by the Company during the year there is no

signifi cant particular with respect to conservation of energy, technology absorption

and foreign exchange earnings and outgo which require disclosure under clause (e)

of sub-section (1) of section 217 of the Companies Act, 1956 read with Companies

(Disclosure of Particulars in the Report of Board of Directors) Rules, 1988.

DIRECTORS RESPONSIBILITY STATEMENT:

As required under Section 217(2AA) of the Companies Act, 1956 your Directors

confi rm that:

i) In the preparation of the Annual Accounts for the fi nancial year ended 31st

March, 2010, the applicable accounting standards had been followed

alongwith proper explanation relating to material departures;

ii) The Directors had selected such accounting policies and made judgements

and estimates that are reasonable and prudent so as to give a true and fair view

of the state of affairs of the company as on 31st March, 2010 and of the profi t

of the company for that period;

iii) The Directors had taken proper and suffi cient care for the maintenance of


Companies Act, 1956 for safeguarding the assets of the company and for


iv) The Directors had prepared the annual accounts on going concern basis.

BOARD OF DIRECTORS:

During the year, no change had been occurred in the Board of Directors of the Company.

Further, pursuant to the provisions of section 256 of the Companies Act, 1956, Shri

N. K. Sharma shall retire by rotation at the ensuing Annual General Meeting and being

eligible offers himself for re-appointment.

ACKNOWLEDGEMENT:

The Board of Directors wish to place on record its appreciation for the support and

co-operation extended by the Union Ministry of Power, NTPC Ltd., Gujarat Power

Corporation Ltd., Gujarat State Electricity Corporation and other agencies of Govt. of

India/Govt. of Gujarat and Auditors of the company.


Place: New Delhi. (R. S. Sharma)

Dated: July 14, 2010 Chairman

ANNEXURE-I

COMPLIANCE CERTIFICATE

CIN: U40105DL2001GOI113508

Authorise Capital: Rs. 10,00,00,000/-

To

The Members

PIPAVAV POWER DEVELOPMENT COMPANY LIMITED NTPC Bhawan, Core-7, Scope Complex,

7, Institutional Area, Lodhi Road,

New Delhi – 110 003.

I have examined the registers, records, books and papers of PIPAVAV POWER DEVELOPMENT COMPANY LIMITED as required to be maintained under the

Companies Act, 1956, (the Act) and the rules made thereunder and also the

provisions contained in the Memorandum and Articles of Association of the

company for the fi nancial year ended 31st March, 2010 (the fi nancial year). In my

opinion and to the best of my information and according to the examinations carried

out by me and explanations furnished to me by the company, its offi cers and agents,

I hereby certify that:

1. The Company has kept and maintained all registers as stated in Annexure ‘A’ to

this certifi cate as per the provisions of the Act and the rules made thereunder

and all entries therein have been duly recorded.

2. The Company has duly fi led the forms and returns on the dates as stated in

Annexure ‘B’ to this certifi cate with the Registrar of Companies, Regional

Director, Central Government, Company Law Board or other authorities generally

within the time limit prescribed under the Act and the rules made thereunder.

3. The Company being a public limited Company has the minimum prescribed

paid-up capital.

4. The Board of Directors duly met 4 (Four) times on 13th May, 2009, 22nd July,

2009, 04th November, 2009 & 29th March, 2010 in respect of which meetings

proper notices were given and the proceedings were duly recorded and

signed in minutes books maintained for the purpose.

5. The Company was not required to close its Register of Member during the

fi nancial year.

6. The Annual General Meeting for the fi nancial year ended 31st March, 2009

was held on 22nd July, 2009 after giving due notice to the members of the

Company and the resolutions passed thereat were duly recorded in Minutes

Book maintained for the purpose.


7. No Extra Ordinary General Meetings was held during the fi nancial year.

8. As explained to me, the Company has not advanced any loan to its directors

or persons or fi rms or companies referred in the section 295 of the Act.

9. The Company has not entered into any contract falling within the purview of

Section 297 of the Act.

10. The Company has made necessary entries in the register maintained under

section 301 of the Act.

11. As explained to me, there were no instances falling within the purview of

Section 314 of the Act and as such the Company was not required to obtain

any approvals from the Board of Directors, Members or Central Government,

as the case may be.

12. The Company has not issued any duplicate share certifi cate during the fi nancial year.

13. The Company:

(i) has not made allotment / transfer / transmission of securities during the

fi nancial year.

(ii) was not require to deposit any amount in a separate bank account, as no

dividend was declared during the fi nancial year.

(iii) was not required to post warrant to any member of the Company, as no

dividend was declared during the fi nancial year.

(iv) was not required to transfer any amount in Investor Education &

Protection Fund, as there is no unpaid dividend, application money

due for the refund, matured deposits, matured debentures and the

interest accrued thereon, which have remained unclaimed or unpaid for

a period of seven years.

(v) has duly complied with the requirements of section 217 of the Act.

14. The Board of Directors of the Company is duly constituted. There was no

appointment of Additional Director or Alternate Director or Director to fi ll

Casual Vacancy during the fi nancial year.

15. The Company has not appointed Managing Director / Whole time director

during the fi nancial year.

16. The Company has not appointed any sole-selling agents during the fi nancial year.

17. The Company was not required to obtain necessary approvals of the Central

Government, Company Law Board, Regional Director, Registrar of Companies

and/or such authorities prescribed under the various provisions of the Act.

18. The Directors have disclosed their interest in other Firms / Companies to the Board

of Directors pursuant to the provisions of the Act and the rules made thereunder.

19. The Company has not issued equity shares during the fi nancial year.

20. The Company has not bought back any shares during the fi nancial year.

21. As the Company has not issued any preference shares or debentures, there was

no redemption of preference shares or debentures during the fi nancial year.

22. There were no transactions necessitating the Company to keep in abeyance

the rights to dividend, rights shares and bonus shares pending registration of

transfer of shares.

23. The Company has not invited any public deposits including unsecured loans

falling within the purview of sections 58A and 58AA read with Companies

(Acceptance of Deposit) Rules, 1975 during the fi nancial year.

24. The Company has not made any borrowing during the fi nancial year.

25. The Company has not made investments in other body corporate and has not

given any guarantees or provided securities to other body corporate during

the fi nancial year.

26. The Company has not altered the provisions of the Memorandum of Association

with respect to Situation of the Registered Offi ce of the Company from one

state to another during the fi nancial year.


with respect to the Objects of the Company during the fi nancial year.


with respect to Name of the Company during the fi nancial year.


with respect to Share Capital of the Company during the fi nancial year.

30. The Company has not altered its Articles of Association during the fi nancial year.

31. As explained to me, there was no prosecution initiated against or show cause notices

received by the Company during the fi nancial year for offences under the Act.

32. The Company has not received any money as security from its employees

during the fi nancial year.

33. The Company has not constituted any Provident Fund Trust for its employees

and as such the provisions of section 418 of the Act are not applicable.

FOR A. KAUSHAL & ASSOCIATES

COMPANY SECRETARIES

AMIT KAUSHAL

PLACE : NEW DELHI PROPRIETOR

DATE : 22.04.2010 C.P.NO. 6663

ANNEXURE ‘A’Registers as maintained by the Company:

S.No. Name of Register(s) Under Section

1. Register of Members 150

2. Register & Returns 163

3. Minutes Book of General Meetings, Board Meetings. 193

4. Books of Accounts 209

5. Register of particulars of contracts in which directors are

interested.

301

6. Register of Director, Managing Director, Manager, Secretary. 303

7. Register of Directors’ Shareholdings 307

ANNEXURE ‘B’Forms and Returns as fi led by the Company with Registrar of Companies, Regional Director, Central Government or any other Authorities during the fi nancial year ended 31st March, 2010.

S. No. Forms & Returns U/s For Filed on

1. Form No. 23AC & Form No.

23ACA alongwith Notice

of Annual General Meeting,

Balance Sheet, Profi t & Loss

Account together with Auditors

& Directors’ Report thereon.

220 the fi nancial year

ended on 31st

March, 2009.

10.08.2009

2. Form No. 20B alongwith Annual

Return as per Schedule V

159 the Annual General

meeting held on

22nd July, 2009.

17.08.2009

3. Form No. 66 383A the fi ling Compliance

Certifi cate for the

fi nancial year ended

on 31st March, 2009.

10.08.2009

PIPAVAV POWER DEVELOPMENT COMPANY LIMITED

BALANCE SHEET AS AT 31st MARCH 2010

Rs.

Sch. No. 31.03.2010 31.03.2009

SOURCES OF FUNDS


Capital 1 37,50,000 37,50,000


CURRENT ASSETS, LOANSAND ADVANCES

Cash and bank balances 2 - 13,068

Loans and advances - -

- 13,068

LESS: CURRENT LIABILITIESAND PROVISIONS

Liabilities 3 - 26,538

Net Current Assets - (13,470)

Profi t and Loss Account 37,50,000 37,63,470

TOTAL 37,50,000 37,50,000

Notes on Accounts 4

Schedules 1 to 4 form integral part of Annual Accounts

For & on Behalf of the Board of Directors

(N. K. Sharma) (R. S. Sharma)

Director Chairman

In terms of our report of even date

For K.K.Jain & Co.


(Simmi Jain)

M.No.86496

Partner

FRN No. 02465N

Place: New Delhi

Dated: 22.04.2010


PIPAVAV POWER DEVELOPMENT COMPANY LIMITEDPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st March 2010

Rs.Income : Current Year Previous YearLiability written off-NTPC Ltd. 22,611 -Total 22,611 -Expenditure :Filing fees 1,500 3,100Professional FeesSecretarial Audit FeesAudit fees

2,096-

5,515

2,4714,412

11,030Miscellaneous Expenses 30 782Total 9,141 21,795Profi t (Loss) before Tax 13,470 (21,795)Balance brought forward (37,63,470) (37,41,675)Balance Carried to Balance Sheet (37,50,000) (37,63,470)Earning Per share(Equity Shares of Face Value of Rs.10/-each)- Basic and Diluted 0.04 (0.06)

For & On Behalf of the Board of Directors(N. K. Sharma) (R. S. Sharma)

Director ChairmanIn terms of our report of even dateFor K.K.Jain & Co.Chartered Accountants(Simmi Jain)M.No.86496

Partner

FRN No. 02465N Place: New DelhiDated: 22.04.2010

SCHEDULES FORMING PART OF BALANCE SHEETSchedule 1 Rs.CAPITAL 31.03.2010 31.03.2009Authorised1,00,00,000 Equity Shares of Rs.10/- each 10,00,00,000 10,00,00,000Issued Subscribed and Paid-up3,75,000 equity shares (previous year 3,75,000 equity shares) of Rs.10/- each held by the hold-ing company, NTPC Limited, and its nominees. 37,50,000 37,50,000

SCHEDULE -2CASH & BANK BALANCES :Cash on hand - 306Balance with Scheduled Bank in Current Account - 12,762TOTAL - 13,068

SCHEDULE -3CURRENT LIABILITIES & PROVISIONS :

Other Liabilities - For Services - 26,538TOTAL - 26,538

SCHEDULE-4Signifi cant Accounting Policies:1. The fi nancial statements are prepared on accrual basis of accounting under

historical cost convention in accordance with generally accounting principles in India and the relevant provisions of the Companies Act, 1956 including accounting standards notifi ed there under.

Notes on Accounts:1. Ministry of Power (MOP) has directed NTPC Limited to disassociate from

the Pipavav Power Project in view of Government of Gujarat’s (GOG) decision to develop the project with another strategic partner. Keeping in view the above, the Board of Directors of NTPC Limited have already given consent for winding up of the Company after due settlement of claims of PPDCL with GPCL/GOG. Further, on being approached by NTPC, Ministry of Power, GOI had issued a Presidential Directive dated July 3, 2009 to NTPC conveying the approval of GOI to permit NTPC forZ winding up of PPDCL pending fi nal settlement of claims with GPCL/GOG.

Further, GPCL has paid a sum of Rs. 20,34,534/- to NTPC Limited during the fi nancial year 2009-10 towards balance of expenses. The said amount has been accounted for in the books of account of NTPC Limited.

Ministry of Power, GOI, through its further Presidential Directive dated April 15, 2010 had conveyed the approval of GOI to permit NTPC for winding up of PPDCL through striking off the name of PPDCL under section 560 of the Companies Act, 1956.

2. Earning per Share : The elements considered for calculation of Earning per Share (Basic and

Diluted) are as under:


Net Profi t before Tax used as numerator 13,470 (21,795)

Weighted Average number of Equity Shares used as denominator 3,75,000 3,75,000

Earning per Share – Basic and Diluted 0.04 (0.06)

Face value per share 10 10




Date Month Year




N I L N I L


N I L N I L



3 7 5 0 3 7 5 0

Source of Funds


3 7 5 0 N I L


N I L N I L



N I L N I L


N I L N I L

Accumulated Losses

3 7 5 0



N I L 9

Profi t/Loss before Tax Profi t/Loss after Tax

1 3 1 3


0 . 0 4 N I L



Item Code No. -(ITC Code)Product Description -

In terms of our report of even date For & On Behalf of the Board of DirectorsFor K.K.Jain & Co.Chartered Accountants(Simmi Jain) (N. K. Sharma) (R. S. Sharma)M.No.86496 Director ChairmanPartner


PIPAVAV POWER DEVELOPMENT COMPANY LIMITEDCASH FLOW STATEMENT FOR THE YEAR ENDED 31st March 2010

Rs.


A.CASH FLOW FROM OPERATING ACTIVITIES:Net Operating Profi t (Loss) before working capital changes 13,470 (21,795)

Adjustment for

Sundry creditors (26,538) (288)

Loans & Advances - -

Net Cash fl ow (outgo) from Operating Activities – A (13,068) (22,083)

B.CASH FLOW FROM FINANCING ACTIVITIES:Issue of Share Capital - -

Net Cash fl ow (outgo) from fi nancing Activities – B - -

Net Increase (Decrease) in cash and cash equivalents (A+B) (13,068) (22,083)

Cash & Cash equivalent (Opening Balance) 13,068 35,151

Cash & Cash equivalent (Closing Balance) - 13,068

Note : Cash & Cash equivalent includes cash in hand and balance with banks

In terms of our report of even date For & On Behalf of the Board of DirectorsFor K.K.Jain & Co.Chartered Accountants(Simmi Jain) (N. K. Sharma) (R. S. Sharma)M.No.86496 Director ChairmanPartner



Auditor’s Report

To, The Members of PIPAVAV POWER DEVELOPMENT COMPANY LIMITED

We have audited the attached balance sheet of Pipavav Power Development

Company Limited, New Delhi as at 31st March, 2010, the Profi t & Loss Account

and also the cash fl ow statement for the year ended on that date annexed thereto.

These fi nancial statements are the responsibility of the company’s management.

Our responsibility is to express an opinion on these fi nancial statements based on

our audit.

We conducted our audit in accordance with auditing standards generally accepted

in India. Those standards require that we plan and perform the audit to obtain

reasonable assurances about whether the fi nancial statements are free of material

misstatement(s). An audit includes examining, on a test basis, evidence supporting

the amounts and disclosures in the fi nancial statements. An audit also includes

assessing the accounting principles used and signifi cant estimates made by

management, as well as evaluating the overall fi nancial statement presentation. We

believe that our audit provides a reasonable basis for our opinion.

We report that:

i. We have obtained all the information and explanation, which to the best of our

knowledge and belief were necessary for the purposes of our audit;

ii. In our opinion, proper books of account as required by law have been kept by

the company so far as appears from our examination of those books;

iii. The balance sheet, profi t & loss account and cash fl ow statement dealt with by

this report are in agreement with books of account;

iv. In our opinion, the balance sheet, profi t & loss account and cash fl ow statement

dealt with by this report comply with the accounting standards referred to in

sub-section (3C) of section 211 of the Companies Act, 1956;

v. Being a Government Company, clause (g) of sub-section (1) of section 274

of the companies Act, 1956 is not applicable to the company (Notifi cation

NO. GSR 829 (E) dated 21.10.2003 issued by the Department of Company

Affairs);

vi. Ministry of Power has directed National Thermal Power Corporation Ltd to

discontinue its involvement in the company in view of Government of

Gujarat’s decision to develop the project with another strategic partner. Hence

the company is not a going concern.

vii. In our opinion and to the best of our information and according to the

explanations given to us and subject to our comment in para (vi) above, the

said accounts give the information required by the Companies Act, 1956, in

the manner so required and give a true and fair view in conformity with the

accounting principles generally accepted in India:

(a) in the case of balance sheet, of the state of affairs of the company as at

31st March, 2010

(b) in the case of profi t & loss account, of the loss for the year ended on that

date; and

(c) in the case of cash fl ow statement, of the cash fl ows for the year ended

on that date.

As required by the Companies (Auditor’s Report) Order, 2003 (the Order) issued

by the Central Government of India under sub-section (4A) of section 227 of the

Companies Act, 1956, we further report in terms of matters specifi ed in paragraphs

4 and 5 of the said Order that:

(i) Since the company has not commenced any business operations and is not

having any fi xed assets/stocks, clauses (i) & (ii) of the paragraph 4 of the Order


(ii) Since the company has neither granted nor taken any loans, secured or

unsecured to/from companies, fi rms or other parties covered in the register

maintained under section 301 of Act, clause (iii) of the paragraph 4 of the

Order is not applicable to the company;

(iii) Since there is no inventory, fi xed assets and sale of goods, clause (iv) of the

paragraph 4 of the Order is not applicable to the company;

(iv) According to the information given to us, there are no transactions that need

to be entered in the register maintained u/s 301 of the Act, therefore clause (v)

of the paragraph 4 of the Order is not applicable to the company;

(v) According to the information and explanations given to us, the company has

not accepted any deposits from public during the year, therefore, clause (vi)

of the paragraph 4 of the Order is not applicable to the company;

(vi) Since the company is neither a listed company and/nor having a paid up

capital exceeding Rs.50 Lakhs as at the commencement of the fi nancial year

concerned nor having an average annual turnover exceeding fi ve crore rupees

for a period of three consecutive fi nancial year immediately preceding the

fi nancial year concerned, clause (vii) of the paragraph 4 of the Order is not

applicable to the company;

(vii) The Central Government has not prescribed the maintenance of cost records

under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956

for the company, therefore, clause (viii) of the paragraph 4 of the Order is not


(viii) According to the information and explanations given to us, since the company

has not commenced any business operations, various provisions with regard

to payments of Provident Fund, Investor Education and Protection Fund,

Employees’ State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty,

Excise Duty, Cess and any other statutory dues are not applicable to company

for the time being, therefore, clause (ix) of the paragraph 4 of the Order is not


(ix) The accumulated losses of the company are more than fi fty percent of its net

worth. The company has incurred cash losses during fi nancial year covered by

our audit and in the immediately preceding fi nancial year.

(x) As per the information and explanations given to us, clause (xi) of the paragraph

4 of the order is not applicable to the company, since there is no dues payable

by the company to a fi nancial institutions or bank or debenture holders;

(xi) The company has not granted loans and advances on the basis of security by

way of pledge of shares, debentures and other securities, therefore, clause

(xii) of the paragraph 4 of the order is not applicable to the company;

(xii) Since the company is not a chit fund/nidhi/mutual benefi t fund/society, clause

(xiii) of the paragraph 4 of the order is not applicable to the company;

(xiii) Since the company is not dealing or trading in shares, securities, debentures

and other investments, clause (xiv) of the paragraph 4 of the order is not


(xiv) As per the information and explanations given to us, the company has not

given any guarantee for loans taken by others from bank or fi nancial institutions,

therefore, clause (xv) of the paragraph 4 of the order is not applicable to the

company.

(xv) Since the company has not taken/raised any loans, clauses (xvi) & (xvii) of the

paragraph 4 of the order are not applicable to the company;

(xvi) As per the information and explanations given to us, the company has not

made any preferential allotment of shares to parties and companies covered

in the Register maintained under section 301 of the Act.

(xvii) Since the company has not issued any debentures, clause (xix) of the

paragraph 4 of the order is not applicable to the company;

(xviii) Since the company has not raised money by public issue, clause (xx) of the

paragraph 4 of the order is not applicable to the company;

(xix) As per information and explanations given to us, no frauds on or by the

company has been noticed or reported during the course of our audit.

For K. K. JAIN & CO.


(Simmi Jain)

Partner

Place : New Delhi M.No.86496

Dated : 22.04.2010 FRN No. 02465N

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619 (4) OF THE COMPANIES ACT, 1956, ON THE ACCOUNTS OF PIPAVAV POWER DEVELOPMENT COMPANY LIMITED, NEW DELHI FOR THE YEAR ENDED 31 MARCH 2010.

The preparation of fi nancial statements of PIPAVAV POWER DEVELOPMENT

COMPANY LIMITED, New Delhi, for the year ended 31 March 2010 in accordance

with the fi nancial reporting framework prescribed under the Companies Act, 1956,

is the responsibility of the management of the Company. The statutory auditors

appointed by the Comptroller and Auditors General of India under Section 619(2) of

the Companies Act, 1956, are responsible for expressing opinion on these fi nancial

statements under Section 227 of the Companies Act, 1956, based on independent

audit in accordance with the auditing and assurance standards prescribed by their

professional body the Institute of Chartered Accountants of India. This is stated to

have been done by them vide their Audit Report dated 22 April 2010.

I, on behalf of the Comptroller and Auditors General of India, have decided not

to review the report of the statutory auditors’ on the accounts of PIPAVAV POWER

DEVELOPMENT COMPANY LIMITED, New Delhi for the year ended 31 March 2010

and as such have no comments to make under Section 619(4) of the Companies

Act, 1956.

Place: New Delhi




(Ghazala Meenai)




KANTI BIJLEE UTPADAN NIGAM LIMITED

DIRECTORS’ REPORT

Dear Members,

Your Directors have pleasure in presenting the Fourth Annual Report on the working

of the Company together with Audited Accounts and Auditors’ Report thereon for

year ended on 31st March 2010.

OPERATIONAL AND COMMERCIAL PERFORMANCE

The Unit#2 of Muzaffarpur Thermal Power Station (MTPS) of your Company has been

operating after restoration and stabilization since 29.02.2008. The contract for Reno-

vation & Modernisation (R&M) work of Boiler, Turbine, Generator & Auxiliaries (BTG

Packages) for 2X110MW units of MTPS has been awarded to Bharat Heavy Electricals

Limited (BHEL) and the same would be completed within 28 months from the date

of award. R&M cost of both the units would be around Rs. 471.80 crore which is

being fi nanced by Backward Region Grants Fund of the Government of India. R&M of

Balance of Plant (BOP) is being taken up directly by your Company.

The Board of Directors of your Company has granted investment approval for expan-

sion of existing plant by addition of 2X195 MW units on 06.03.2010. The contract for

Main Plant award which includes SG with ESP and TG Package has been awarded to

BHEL at a total contract price of Rs. 1076 crore. As per the work schedule, comple-

tion of fi rst unit shall be achieved within 31 months and second unit shall be com-

pleted within 3 months thereafter. The facilities for the plant would be constructed in

the land available with MTPS and as such no additional land is required for plant and

township. Only 376 acres of land is required for Ash Dyke, its Corridor and Make-

up Water Pump House out of which for 372.27 acres of land, application has been

submitted and demand note for deposit of money is received from Government

of Bihar. The Company has also signed Power Purchase Agreement with Bihar State

Electricity Board. However, power would be allocated by the Ministry of Power,

Government of India.

During the year, the power station of the Company had generated 461 MU of elec-

tricity which was 104.16% over and above the generation in 2008-2009. The plant

operated at an average PLF of 47.8% during the year.

FINANCIAL REVIEW

The fi nancial highlights of the Company for the year ended on 31st March 2010 are

as under:-

(Rs. Crore)

Particulars Fiscal 2010 Fiscal 2009


Share Capital Deposit Pending Allotment 4.3 61.5

Reserve & Surplus 187.4 112.5

Secured Loans 38.4 32.1

Net Block 27.8 29.4

Capital Work-in-Progress 146.9 129.5


Current Assets, Loans and Advances 29.5 24.9

Current Liabilities 27.1 44.3

Loss after Tax (0.08) (0.003)

Earning Per Share (Rs.) (0.13) (0.28)

The fi nancial statements and the performance of the Company have been discussed

in the Management Discussion & Analysis section which is at Annex-1 to this Re-

port.

FIXED DEPOSITS


31st March 2010.


Your Company has initiated a proposal for energy audit at MTPS for further reduction

in Auxiliary power consumption. After the R&M of both the units (2X110MW) would

be completed, consumption of auxiliary power and fossil fuel would be reduced.

Your Company has successfully introduced ERP system to get leverage from informa-

tion technology.

During the period under review the Company had no earning or outgo in foreign

exchange.

AUDIT COMMITTEE

An Audit Committee of the Board of Directors of the Company has been formed

on 07.04.2010 in accordance with Section 292A of the Companies Act, 1956 com-

prising S/ Shri A.K. Singhal, Vivek Kumar Singh, P.K. Rai and N.N. Misra, Directors as

members of the Committee. One meeting of the Audit Committee was held after its

formation, i.e. on 11.05.2010.

AUDITORS’ REPORT

The Comptroller & Auditor General of India through letter dated 21.08.2009 had ap-

pointed M/s GRA & Associates, Chartered Accountants as Statutory Auditors of the

Company for the fi nancial year 2009-10. The Statutory Auditors has submitted their

report and there is no adverse comment or remark in their report.

COMPTROLLER & AUDITOR GENERAL REVIEW

Comptroller & Auditor General of India (C&AG) vide letter dated 14th May 2010 has

decided not to review the report of the Auditors on the accounts of the company

for the year ended 31st March 2010 and as such has no comments to make under

Section 619(4) of the Companies Act, 1956.

As advised by the offi ce of the C&AG, the NIL comments of C&AG on the accounts

of the Company for the year 2009-2010 are being placed with the report of the

Statutory Auditors.


The particulars of employees as prescribed under Sec. 217(2A) of Companies

Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are at

Annex-2.


Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors confi rm that:

i) in the preparation of the annual accounts for the Financial Year ending on 31st

March 2010, the applicable accounting standards have been followed along-

with proper explanation relating to material departures;

ii) the Directors had selected such accounting policies and applied them con-

sistently and made judgments and estimates that are reasonable and prudent

so as to give a true and fair view of the state of affairs of the company as at the

end of Financial Year 2009-2010 and of the loss of the company for the said

period;

iii) the Directors had taken proper and suffi cient care for the maintenance of ade-

quate accounting records in accordance with the provisions of the Companies

Act, 1956, for safeguarding the assets of the company and for preventing and

detecting fraud and other irregularities; and

iv) the Directors had prepared the annual accounts for the Financial Year ending

on 31st March 2010, on going concern basis.

BOARD OF DIRECTORS

Shri R.K. Jain and Shri Swapan Mukherjee have ceased to be the Director of your

Company w.e.f. 31st December 2009 consequent upon attaining the age of super-

annuation.

Shri R.C. Shrivastav has ceased to be the Director of your Company w.e.f. 30th June

2010 consequent upon attaining the age of superannuation.

Shri R.K. Sharma and Shri V.K. Singh have ceased to be the Director of your Company

w.e.f. 27th July 2010 consequent upon their nomination being withdrawn by Bihar

State Electricity Board.

Shri P.K. Rai, Member (Generation, Distribution and Rural Electrifi cation), BSEB has

been nominated by BSEB as a Director in place of Shri Swapan Mukherjee. Shri N.N.

Misra, Executive Director (HR), NTPC has been nominated by NTPC as a Director in

place of Shri R.K. Jain. The Board of your Company has appointed both Shri P.K. Rai

and Shri N.N. Misra as Directors w.e.f. January 9, 2010.

Shri V.C. Gupta, Member (Finance & Revenue), BSEB has been nominated by BSEB as

a Director in place of Shri V.K. Singh. Shri G.J. Deshpande, Executive Director (OS),

NTPC has been nominated by NTPC as a Director in place of Shri R.C. Shrivastav. The

Board of your Company has appointed both Shri V.C. Gupta and Shri G.J. Desh-

pande as Directors w.e.f. 27th July 2010.

The Board wishes to place on record its deep appreciation for the valuable ser-

vices rendered by Shri R.K. Jain, Shri Swapan Mukherjee, Shri R.C. Shrivastav, Shri R.K.

Sharma and Shri V.K. Singh during their association with your Company.

As per the provisions of the Companies Act, 1956, Shri A.K. Singhal and Shri P.K. Rai,

Directors shall retire by rotation at the ensuing Annual General Meeting and being

eligible, offers themselves for re-appointment.

ACKNOWLEDGEMENT

Your Directors acknowledge with deep sense of appreciation for co-operation ex-

tended by Ministry of Power/ Government of India, Government of Bihar, Bihar State

Electricity Board, Planning Commission, Central Electricity Regulatory Commission,

Ministry of Environment and Forests and Airports Authority of India.

Your Directors also convey their gratitude to the Holding Company i.e. NTPC Ltd.,

Auditors, Bankers, contractors, vendors and consultants of the Company.

We wish to place on record our appreciation for the untiring efforts and contribu-

tions by the employees at all levels to ensure that the Company continues to grow

and excel.


Place: New Delhi (R.S. Sharma)

Dated: 27.07.2010 Chairman


Annex-1 to the Directors’ Report

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY SECTOR AND DEVELOPMENTS

Generation

Existing Installed Capacity

As the Indian economy continues to surge ahead, its power sector has been

expanding concurrently to support the growth rate. The demand for power is

growing exponentially and the scope for the growth of this sector is immense.

The total installed capacity in the country as on March 31, 2010 is 159,398.49 MW.

The total thermal capacity, including gas stations and diesel generation accounts for

about 64.3% of installed capacity of the country followed by hydro capacity at

23.1%. Nuclear stations account for 2.9% and the balance 9.7% is contributed by

Renewable Energy Sources.

According to the Ministry of Power, a total of 34 projects were commissioned during

2009-10 with a total capacity of 9,585 MW. These include 31 thermal power plants

with a total capacity of 9,106 MW, one hydro power plant with a capacity 39 MW,

and two nuclear power plants with a combined capacity of 440 MW.

Existing Generation

The total power generation in the country during the year 2009-10 was 771.551 BUs

as compared to 723.794 BUs generated during the last year registering a growth of

6.5%.

Demand and Supply Position

Currently, the sector is characterised by acute power shortages. During the year, the

peak shortage was 12.7% and the energy shortage was 10.1%.

Capacity Utilisation

Capacity utilisation in the Indian power sector is measured by Plant Load Factor (PLF).

The All-India PLF for the power sector was 77.48% during 2009-10.

Performance of Kanti Bijlee Utpadan Nigam Limited

During the year, the power station of the Company had generated 461 MU of

electricity which was 104.16% over and above the generation in 2008-2009. The

plant operated at an average PLF of 47.8% during the year. The Auxiliary power

consumption was 14.08% of generation as against 16.25% of generation during the

corresponding period in last year. The energy sale during the year was Rs. 144.47

crore at the mutually agreed rate of Rs. 3.65 per unit between the Company and Bihar

State Electricity Board (BSEB). Payment at this rate would be subject to adjustment

based on tariff decided by Central Electricity Regulatory Commission. Your Company

has requested BSEB for making timely payment towards sale of energy.

SWOT ANALYSIS

Strength:

- Fully supported prestigious project of Govt. of India

- Reputed background of promoters

- Strong back up of Govt. of Bihar

- NTPC Limited as a major stake holder

- NTPC as a consultant having wide experience in engineering and management

expertise from planning to commissioning and operating power plants

- BHEL as EPC contractor

- Funding of R&M under BRGF scheme of GOI

Weakness:

- Climatic condition of Bihar: Huge Rainfall and Floods

- Manpower constraint

- Socio-economic condition of the area

- Non availability of adequate infrastructure facilities

- Lack of technically skilled and experienced local manpower

- Schedule dependency on Transmission Lines

Opportunity:

- Huge Demand of power by Bihar

- Increasing industrial development in Bihar

- Allocation of power to other States

- R&M of BOP by KBUNL directly

Threats:

- Rising prices of the feed stock

- Constrained availability of coal

- Poor quality of coal

- Increased rate of power due to de-rated capacity of plant

- Delayed Realisation of sale proceeds from Bihar State Electricity Board

- Environmental concern for increasing pollution

- Land Acquisition

- Clearance from various Authorities

- Security Concern

OUTLOOK

The company’s outlook appears to be very bright and will get break even very soon

once the plant is commissioned and production is stabilized. It will generate

suffi cient revenue for the growth and development of the company vis-à-vis

employment opportunities to the local inhabitants.

RISK AND CONCERN

Risk taking is intrinsic to business growth. All business organizations face risks either

from internal operation or from external environment. The base of any business is

healthy appetite for risk. This is why one of the greatest and most important challenges

for an organization is to defi ne the optimal risk level for its business to ensure that its

activities produce risk adjusted returns.

The risk to which company is exposed and the initiatives taken by the company to

mitigate such risks are given below:

Hazard risks are related to natural hazards arising out of nature of product/operation,

accidents and natural calamities like fi re, earthquake or cyclone etc.

Risk associated with protection of environment, safety of operations and health of

people at work is monitored regularly with reference to statutory regulations

prescribed by the govt. authorities and company is formulating its own guideline in

this regard. Risk arising out of accidents, fi re etc is protected through insurance

policies and limited through contractual agreements wherever possible.

Financial Risks are concerned with delayed realisation of sale proceeds from BSEB,

servicing of debt, releasing of funds from Backward Region Grants Fund scheme of

Govt. of India.

The Company is persistently taking up with BSEB for timely payment of sale proceeds

and with Planning Commission for release of grant under BRGY scheme.

Operational risks are associated with systems, processes and people and cover

areas such as operational failure or interruption, disruption in supply chain.

Low quality and less availability of coal is a major issue. Also, manual unloading of

coal consumes most of the time. However, company is in the process of procuring

and implementing Wagon Tippler by which Company shall be able to arrange faster

unloading of coal. Timely completion of Renovation & Modernisation of Main Plant

and Balance of Plant of Unit -1 & Unit -2 of existing MTPS shall help in generation of

electricity by the plant in the long run and also the revenue being generated from it.

INTERNAL CONTROL

The Company has robust internal systems and processes for effi cient conduct of

business. The Company is complying with relevant laws and regulations. It is

following delegation of powers as is being followed in NTPC Limited. The accounts

are being prepared in accordance with the Accounting Standards issued by Institute

of Chartered Accountants of India from time to time and as per the guidelines issued

from NTPC Limited. The Company has implemented SAP in all modules like HR,

Accounting, Engineering, etc. It is helping the Company a lot in retrieving data and

maintaining systematic backup.

In order to ensure that all checks and balances are in place and all internal systems

are in order, regular and exhaustive internal audits are conducted by experienced

fi rm of Chartered Accountants in coordination with Internal Audit Department of

NTPC Limited. The Company has constituted an Audit Committee this year. The

scope of this Committee includes compliance with Internal Control Systems.

FINANCIAL DISCUSSION AND ANALYSIS

Your company was formed on 06.09.2006 as per the decision of Ministry of Power

and Government of India to take over the assets of Muzaffarpur Thermal Power

Station (2X110MW).

Your Company has prepared the fi nancial statements on accrual basis of accounting

under historical cost convention in accordance with generally accepted accounting

principles in India and the relevant provisions of the Companies Act, 1956 including

accounting standards notifi ed thereunder.

During the fi nancial year 2009-2010, M/s Thakur Vaidyanath Aiyer & Co., Chartered

Accountants, Patna who were appointed for the purpose of carrying out exercise of

physical verifi cation of taken over assets and apportionment of transfer value of

various physically verifi ed assets submitted their verifi cation and value report on

25.12.2009. The transferred value of the assets arrived at Rs. 88.4 crore.

Your Company has allotted shares worth Rs. 88.4 crore to NTPC Limited and BSEB on

06.03.2010. NTPC Limited has been allotted shares for Rs. 57.1 crore, the amount

which NTPC had paid to Life Insurance Corporation of India against vacation of

charge created against transferred assets and shares for the balance value i.e. Rs. 31.3

crore have been allotted to BSEB. After allotment, the shareholding of NTPC and

BSEB in the Company is in the ratio of 64.57:35.43.

During the year, the energy sent out was 396 MUs as against 189 MUs during the

corresponding period last year. The expenditure incurred on employees remuneration

and other benefi ts relating to employees, administration and other expenses,


depreciation, interest and fi nance charges, less receipts from sale of energy to BSEB,

amounting to Rs. 40.5 crore were transferred to Expenditure during Construction

Account. The training and recruitment expenses, provision for unserviceable store

and provision for shortage store amounting to Rs. 741,820 were charged to Profi t &

Loss Account. The net loss carried to the Balance Sheet during the year was Rs.

7,50,950/-.

The additions made in the fi xed assets during the year was Rs. 13,09,651/- and the

gross block after depreciation amounted to Rs. 27.8 crore. The depreciation has

been charged on residual life of the assets after allocation of value to assets is being

made by M/s Vaidyanath Aiyer & Co., Chartered Accountants.

Out of Rs. 350 crore grant sanctioned by Government of India under Backward

Region Grants Fund scheme (BRGF), Bharat Heavy Electricals Limited has been paid

Rs. 172.50 crore as an advance and Rs. 15 crore had been paid to your company. The

Company has a loan liability of Rs. 26.2 crore payable to NTPC which is secured by

mortgage through deposit of title deed.

The addition to buildings, plant & machinery, survey & investigation expenses (Stage-

II), pre commissioning expenses and expenditure during construction have been

accounted as Capital Work-in-Progress and this amounted to Rs. 146.87 crore.

POWER OF HUMAN RESOURCE

Your Company takes pride in its highly motivated and competent human resource

that has contributed its best to bring the Company to its present stature. As an

affi rmative measure to ensure social justice, your company has endeavored for

adequate representation of Scheduled Caste and Scheduled Tribes employees. Out

of total 149 employees in the Company, 8 employees belong to SC Category and 4

employees belong to ST Category.

The Company is paying adequate perks and also making employees part of profi t by

Annex-2 to the Directors’ Report

PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 217 (2A) OF THE COMPANIES ACT, 1956


Remuneration Qualifi cation Date of Commencement of

Employment

Exp. Age Last Employment held

Remarks

(Rs.)

(Yrs) (Yrs)

1 2 3 4 5 6 7 8

Employed for Whole of the Year

Dutta Dilip Kumar DGM (C&M) 2868124 BE (Electrical) 30.11.1981 29 51 - -

Jha Satish Chandra AGM (F&A) 2560302 C.A. 01.07.1987 23 59 - -

Jha Shambhu Sharan DGM (TMD) 2519447 BE (Mech.) 01.09.1987 23 48 - -

Kumar Uttam DGM (Oper.) 2673787 B.Sc. Engg.(Elect) 21.11.1983 27 51 - -

Singh Jai Shankar Prasad AGM (R&M) 2500536 B.Sc. Engg.(Mech) 25.01.1985 25 59 - -

Sarkar Shuddhasattwa AGM (MM) 2490407 BE (Mech) 27.10.1986 24 50 - -

Employed for Part of the Year

-NIL-

Notes:

1 Persons named above are/ were employees of the Company.

2 Remuneration includes salary, allowances, leave encashment, leave travel concession, payment for subsidized leased accommodation, reimbursement of medical

expenses to employees and employer’s contribution to Provident Fund and other funds. However, it does not include the monetary value of the medical treatment

provided in the Company’s dispensaries/hospitals at Project sites, since it can not be quantifi ed employees-wise. In addition, the employees are entitled to gratuity/

group insurance in accordance with Company’s Rules.

3 None of the employees listed above is related to any director of the company.

4 Remuneration mentioned above is inclusive of retirement /separation benefi ts paid during the year and is not indicative of any regular remuneration structure of em-

ployees of the Company.

5 None of the employees hold any equity in the Company.




giving Profi t Related Payment. They are being imparted training for their professional

upgradation from time to time and as an endeavour of being a learning organisation.

The Company had paid Rs. 16.7 crore towards Salaries, Wages, Allowances, Benefi ts,

Contribution to Provident and other Funds and welfare expenses.

Safe methods are practised in all areas of Operation & Maintenance and Construction

& erection activities for the protection of workers against injury and diseases.

Occupational safety at workplace is given utmost importance.

ENVIRONMENTAL PROTECTION AND CONSERVATION, TECHNOLOGICAL CONSERVATION, RENEWABLE ENERGY DEVELOPMENTS, FOREIGN EXCHANGE CONSERVATION

Your Company has initiated a proposal for energy audit at MTPS for further reduction

in consumption of auxiliary power. After the R&M of both the units (2X110MW)

would be completed, consumption of auxiliary power and fossil fuel would be

reduced.

During the period under review the Company had no earning or outgo in foreign

exchange.

CAUTIONARY STATEMENT

It is clarifi ed that the actual results may vary materially from those expressed or

implied in the Management Discussion & Analysis due to risks or uncertainties

associated therewith depending upon economic conditions, government policies

and other incidental factors.





ACCOUNTING POLICIES 2009-10.






2. USE OF ESTIMATES






information, actual results could differ from these estimates & assumptions and

such differences are recognized in the period in which the results are

crystallized.

3. GRANTS-IN-AID

3.1 Grants-in-aid received from the Central Government or other authorities

towards capital expenditure are treated initially as capital reserve and

subsequently adjusted as income in the same proportion as the

depreciation written off on the assets acquired out of the grants.

3.2 Where the ownership of the assets acquired out of the grants vests with

the Government, the grants are adjusted in the carrying cost of such

assets.

3.3 Grants from Government and other agencies towards revenue

expenditure are recognized over the period in which the related costs

are incurred and are deducted from the related expenses.

4. FIXED ASSETS

4.1 Fixed Assets are carried on historical cost.

4.2 Expenditure on renovation and modernization of fi xed assets resulting in

increased life and/or effi ciency of an existing asset is added to the cost

of related assets.

4.3 Intangible assets are recorded at their cost of acquisition.

4.4 Capital expenditure on assets not owned by the Company is refl ected as

a distinct item in Capital Work-in-Progress till the period of completion

and thereafter in the Fixed Assets.

4.5 Deposits, payments/liabilities made provisionally towards compensation,

rehabilitation and other expenses related to land in possession are

treated as cost of land.

4.6 In the case if assets put to use, where fi nal settlement of bills with

contractors is yet to be effected, capitalization is done on provisional

basis subject to necessary adjustment in the year of fi nal settlement.

4.7 Assets and systems common to more than one generating unit are

capitalized on the basis of engineering estimates/assessments.

5. CAPITAL WORK-IN-PROGRESS

5.1 In respect of supply-cum-erection contracts, the value of supplies

received at site and accepted is treated as Capital Work-in-Progress.

5.2 Administration and general overhead expenses attributable to

construction of fi xed assets are identifi ed and allocated on a systematic

basis and included in the cost of related assets till they are ready for their

intended use.

5.3 Deposit work/cost plus contracts are accounted for on the basis of

statements of account received from the contractors.

6. FOREIGN CURRENCY TRANSACTIONS

6.1 Foreign currency transactions are initially recorded at the rates of

exchange rulling at the date of transaction.

6.2 At the balance sheet date, foreign currency monetary items are reported

using the closing rate. Non-monetary items denominated in foreign

currency are reported at the exchange rate ruling at the date of

transaction.

6.3 Exchange differences (loss), arising from translation of foreign currency

loans relating to fi xed assets/capital work-in-progress to the extent

regarded as an adjustment to interest cost are treated as borrowing cost.

Exchange differences (gain) are adjusted in the cost of related assets to

the extent the related exchange loss was regarded as borrowing cost in

the earlier periods till the related assets are ready for their intended

use.

6.4 Exchange differences are recognized as income or expense in the

period in which they arise.

7. BORROWING COSTS

Borrowing costs attributable to the fi xed assets during construction/renovation

and modernization are capitalized. Such borrowing costs are apportioned on

the average balance of capital work-in-progress for the year. Other borrowing

costs are recognized as an expense in the period in which they are incurred.

8. INVENTORIES

8.1 Inventories are valued at the lower of cost, determined on weighted

average basis, and net realizable value.

8.2 Diminution in the value of obsolete, unserviceable and surplus stores

and spares is ascertained on review and provided for.

9. EXPENDITURE

9.1 Depreciation is charged on straight line method at the rates specifi ed

in schedule XIV of the Companies Act, 1956 except for the following


a) Kutcha Roads 47.50%

b) Enabling works

- Residential buildings including their internal

electrifi cation.

- Non-residential buildings including their internal

electrifi cation, water supply, sewerage &

drainage works, railway sidings, aerodromes,

helipads and airstrips.

06.33%

19.00%

c) Personal computers and Laptops including peripherals 19.00%

d) Photocopiers and Fax Machines 19.00%

e) Air conditioners, water coolers and Refrigerators 08.00%

9.2 Depreciation on additions to/deductions from fi xed assets during the



9.3 Assets costing up to Rs. 5000/- are fully depreciated in the year of

acquisition.

9.4 Cost of software recognized as intangible asset, is amortized on straight


earlier.

9.5 Where the cost of depreciable assets has undergone a change during

the year due to increase/decrease in long term liabilities on account of

exchange fl uctuation, price adjustment, change in duties or similar

factors, the unamortized balance of such asset is charged prospectively

over the residual life determined on the basis of the rate of

depreciation.

9.6 Where the life and /or effi ciency of an asset is increased due to renovation

and modernization, the expenditure thereon along-with its unamortized

depreciable amount is charged prospectively over the revised useful life

determined by technical assessment.

9.7 Machinery spares which can be used by in connection with as item of

plant and machinery and it’s use is expected to be irregular, are

capitalized and fully depreciated over the residual useful life of the

related plant and machinery.

9.8 Capital expenditure on assets not owned by the company is amortized

over a period of 4 years from the year in which the fi rst unit of project

concerned comes into commercial operation and thereafter from the

year in which the relevant asset becomes available for use. However,

such expenditure for community development in case of stations under

operation is charged off to revenue.

9.9 Leasehold buildings area amortized over the lease period or 30 years,

whichever is lower. Leasehold land and buildings, whose lease period

is yet to be fi nalized, are amortized over a period of 30 years.

9.10 Expenses on ex-gratia payments under voluntary retirement scheme,

training & recruitment and research and development are charged to

revenue in the year incurred.

9.11 Preliminary expenses on account of new projects incurred prior to


9.12 Actuarial gains/losses in respect of ‘Employee Benefi t Plans’ are

recognized in the statement of profi t & loss account.

9.13 Net pre-commissioning income/expenditure is adjusted directly in the

cost of related assets and systems.

9.14 Prepaid expenses and prior expenses/income of items of Rs. 100,000/-

and below are charged to natural heads of accounts.

9.15 Carpet coal is charged off to coal consumption. However, during pre-

commissioning period, carpet coal is retained in inventories and charged

off to consumption in the fi rst year of commercial operation. Windage

and handling losses of coal as per norms are included in cost of coal.


A provision is recognized when the company has a present obligation as a






the management/independent experts. These are reviewed at each balance




prescribed in Accounting Standard (AS) 3 on ‘Cash Flow Statement’.



BALANCE SHEET AS AT 31ST MARCH 2010

Amount (Rs)

Schedule As at As at

No 31.03.2010 31.03.2009

SOURCES OF FUNDS


Capital 1 885,075,370.00 1,000,000.00

Share Capital Deposit pending Allotment 43,800,000.00 614,800,000.00

Reserve & Surplus 2 1,874,128,334.00 1,124,879,284.00

2,803,003,704.00 1,740,679,284.00

LOAN FUNDS

Secured Loan 3 383,731,637.00 320,686,286.00

TOTAL 3,186,735,341.00 2,061,365,570.00


FIXED ASSETS 4

Gross Block 334,868,757.22 323,301,752.00

Less: Depreciation 56,811,103.96 29,726,171.00

Net Block 278,057,653.26 293,575,581.00

Capital Work-in-Progress 5 1,468,733,115.70 1,294,909,252.00

Construction Stores and

Advances 6 1,415,918,574.31 667,324,419.00

3,162,709,343.27 2,255,809,252.00


Inventory 7 9,685,075.00 30,884,255.00

Other Current Assets 8 2,594,755.08 317,331.00

Sundry debtors 9 131,240,801.00 41,743,349.00

Cash & Bank Balances 10 140,862,411.46 49,174,518.00

Loans and Advances 11 10,818,855.36 126,716,531.00

295,201,897.90 248,835,983.00

LESS: CURRENT LIABILITIES

Liabilities 12 246,353,691.31 427,630,245.00

Provisions 13 24,822,209.00 15,649,420.00

271,175,900.31 443,279,665.00

Net Current Assets 24,025,997.73 -194,443,682.00

TOTAL 3,186,735,341.00 2,061,365,570.00


Schedule 1 to 20 and accounting policies form part of accounts.

For & On Behalf of the Board of DirectorsAs per our report of even date

For GRA & Associates


(Rohit Gupta) (Ruchi Agarwal) (R.K.Sharma) (R.S.Sharma)


M. No 091710

Place: New Delhi

Dated: 11thMay 2010


PROFIT & LOSS ACCOUNT FOR THE PERIOD ENDED 31ST MARCH 2010

Amount (Rs)

For the period For the period

Schedule 01.04.2009 to 01.04.2008 to

No 31.03.2010 31.03.2009

INCOME

Other Income 14 0.00 0.00

Total 0.00 0.00

EXPENDITURE

Employees’ Remuneration and

Benefi ts 15 - -

Administrative & Other Expenses 16 741,820.00 27,866.00

Depreciation - -

Interest and Finance Charges 17 9,130.00 -

Prior Period Expenditure 18 - -

Total 750,950.00 27,866.00

Profi t/(Loss) before Tax (750950.00) (27866.00)

Provisions:

Fringe Benefi t Tax - 1,189,107.00

Less: Transferred to EDC - 1,189,107.00

Provisions for Tax (Net) - -

Profi t/ (Loss) after Tax (750950.00) -27866.00

Balance Brought Forward (27866.00)

Balance Carried to Balance Sheet (778816.00) -27866.00

Expenditure During Construction 19

Earning Per Share

(Equity Shares, Face Value Rs 10/- each)

Basic (0.13) (0.28)

Diluted (Earning is less than paise one) - -


Schedule 1 to 20 and accounting policies form part of accounts.





(Rohit Gupta) (Ruchi Agarwal) (R.K.Sharma) (R.S.Sharma)


M. No 091710

Place: New Delhi

Dated: 11th May 2010

Amount (Rs)

As at As at

31.03.2010 31.03.2009

SCHEDULE 1: CAPITAL

Authorised

100,000,000 equity shares of Rs 10/- each 1,000,000,000.00 1,000,000,000.00

(Previous year 100,000,000 equity shares

of Rs 10/- each)

Issued, Subscribed and paid up

88507537 equity shares of Rs 10/- each

fully paid up 885,075,370.00 1,000,000.00

(57151000 equity shares of Rs.10 each

fully paid up held by NTPC ltd. and their

nominees received in cash and 31356537

equity shares fully paid up shares held

by Bihar State Electricity Board and their

nominees,in consideration other than

cash.)

(Previous year:51000 equity shares of Rs.10

each fully paid up held by NTPC Ltd. and

their nominees and 49000 shares fully paid

up held by BSEB and their nominees)

Total 885,075,370.00 1,000,000.00

Amount (Rs)

As at As at

31.03.2010 31.03.2009

SCHEDULE 2: RESERVES AND SURPLUSES

Capital Reserve

Opening Balance

(Grants-in-aid from Govt of India) 1,124,907,150.00 1,124,907,150.00

Add: Received during the year 750,000,000.00 -

Closing Balance 1,874,907,150.00 1,124,907,150.00

Profi t/(Loss) from Profi t & Loss Account (778816.00) (27866.00)

Total 1,874,128,334.00 1,124,879,284.00

SCHEDULE 3: SECURED LOANS

Cash credit from bank 120,874,493.00 14,972,000.00

(Secured against Inventory and Trade

Debtors acquired from cash credit loan.)

Loan from Holding Company NTPC Ltd 262,857,144.00 305,714,286.00

(Secured by equitable mortgage through

deposit of title deed.)

Total 383,731,637.00 320,686,286.00



(Formerly VAISHALI POWER GENERATING COMPANY LIMITED)

SCHEDULE NO 4 - FIXED ASSETS Amount (Rs)

A/C CODE DESCRIPTION Gross Block Depreciation Net Block

As at

01.04.2009

Additions Adjustments As at 31.03.2010

As at

01.04.2009

During The

Period

Dedn/

Adjust

As at 31.03.2010

As at 31.03.2010

As at

31.03.2009

TANGIBLE ASSETS

Roads,Bridges,Culverts 0 - 12,430,863 12430863 0 372891 10689017 11061908 1368955 0

Water Supply,drainage 0 4,444,628 4444628 0 226724 226724 4217904 0

Other Buildings 308189733 (6,616,539) 301573194 26591637 13584238 40175875 261397319 281598096

Plant & Machinery 770385 0 0 770385 69347 39762 0 109109 661276 701038

Construction Equipment 1832516 0 0 1832516 120900 206807 0 327707 1504809 1711616

Furniture Fixture & Other

Offi ce quipment

7144865 1128819 1600 8272084 1523291 745549.49 56420 2325260 5946824 5621574

EDP and WP Machine 4243164 117173 0 4360337 1021786 765850 0 1787636 2572701 3221378

Communication Equipments 0 35776 35776 142 142 35634 0

Vehicles 280545 0 0 280545 71812 53304 65890 191006 89539 208733

INTANGIBLE ASSETS

Software 840545 27883 0 868428 327398 278337 0 605735 262693 513147

Total 323301752 1309651 10260552 334868757 29726171 16273606 10811327 56811104 278057653 293575581

Previous Year 317206210 6095542 323301752 17883361 11842810 29726171 293575581 299322849


Depreciation for the year is allocated as given below:-

Charged to Profi t and Loss Account - 0

Less: Depreciation transferred to EDC-sch 17 27,084,933 11842810

Deductions/Adjustment from Gross Block includes-Cost adjustment 10260552

Deductions/Adjustment from Depreciation cost adjustment 10811327

SCHEDULE NO 5CAPITAL WORK-IN-PROGRESS

Description Op Balance as at

01.04.09

Additions during

01.04.09 to 31.03.2010

Adjustments Capitalised during

the period

Cl Balance as at 31.03.2010

Buildings 1,159,118 2,228,589 - 3387707

Plant & Machinery 922844937 1160699909 20090 2083564936

Expenditure Pending Allocation

Survey & Investigation (Stage II-195 MW x 2) 5107976 6692262 0 11800238

Pre-commisioning expenses (net) (259065867) (370953898) 0 (630019765)

Expenditure During Construction 624883178 405523639 0

Less: Allocate to CWIP 1030406817

Total 1294929342 173783683 20090 0.0 1468733116

Previous Year 1023046675 271862577 0 0.0 1294909252

Amount (Rs)

As at As at

31.03.2010 31.03.2009

SCHEDULE 6: CONSTRUCTION STORES AND ADVANCES

ADVANCE FOR CAPITAL EXPENDITURE

Unsecured, considered good

Covered by Bank Guarantee - -

Others 1,281,655,753.10 534,419,720.00

CONSTRUCTION STORES

Steel 1,538,017 -

Others 133,212,419 133,451,220.00

134,750,436.21

1,416,406,189.31 667,870,940.00

Less: Provision for obsolete/shortage Store 487,615.00 546,522.00

Total 1,415,918,574.31 667,324,418.00

SCHEDULE 7: INVENTORIES

(Valued as per Accounting Policy No.6)

Fuel 9,681,955.00 29,432,497.00

Component and Spares - -

Chemical and Consumables 3,120.00 1,451,758.00

Total 9,685,075.00 30,884,255.00

Amount (Rs)

As at As at

31.03.2010 31.03.2009

SCHEDULE 8: OTHER CURRENT ASSETS

Interest accrued on Term

Deposits 2,501,019.08 317,331.00

Others 93,736.00 -

2,594,755.08 317,331.00

SCHEDULE 9: SUNDRY DEBTORS

Debtors for sale of energy 131,240,801.00 41,743,349.00

(Less than six months)

Total 131,240,801.00 41,743,349.00

SCHEDULE 10: CASH & BANK BALANCES

Balances with Scheduled

Banks

Cheque in hand 100,168,000.00 -

Term Deposit 34,317,584.64 36,500,000.00

Current Account 6,376,826.82 12,674,518.00

Total 140,862,411.46 49,174,518.00


Amount (Rs)

As at As at

31.03.2010 31.03.2009

SCHEDULE 11:

LOANS AND ADVANCES

(Considered good,unless otherwise stated)

Loans

Employees

Secured - 22,346,906.00

Unsecured - 1,692,946.00

Advances

Employees 177,309.00 37,266,481.00

Others 1,167,030.36 56,361,396.00

Deposits

Advance Tax (TDS) 391,343.00 82,334.00

Advance Tax -FBT 597,375.00 -

Deposits with others 8,485,798.00 8,966,468.00

Total 10,818,855.36 126,716,531.00

SCHEDULE 12: CURRENT LIABILITIES

Sundry Creditors

For Capital expenditure

Other than Micro & Small Enterprises 94,139,195.01 274,350,217.00


Other than Micro & Small Enterprises 52,220,646.34 55,726,034.00

Deposits, Retention money from

contractors and others 15,256,320.45 9,586,050.00

Less: Investments held as security 1,255,500.00 1,143,412.00

160,360,661.80 338,518,889.00

Other liabilities 18,232,901.38 936,962.00

Amount payable to Holding Company 67,760,128.13 88,174,394.00

Total 246,353,691.31 427,630,245.00

SCHEDULE 13: PROVISIONS

Fringe Benefi t Tax

Opening Balance 101,690.00 81,672.00

Addition during the year - 1,290,797.00

Less: advance tax deposited 101,690.00 1,270,779.00

Closing Balance (Fringe Benefi t tax) - 101,690.00

Employee Benefi ts

Opening Balance 15,547,730.00 7,424,235.00

Additions during the year 12,953,470.00 11,212,265.00

Amount used during the year 3,678,991.00 3,088,770.00

Closing Balance (Employee Benefi t) 24,822,209.00 15,547,730.00

Total 24,822,209.00 15,649,420.00

SCHEDULE 14 :OTHER INCOME For the period For the period

01.04.2009 to 01.04.2008 to

31.03.2010 31.03.2009

Interest from bank(Gross) (Tax Deducted at

Source Rs.309009, Previous Year Rs.82334) 2,933,282.72 399,665.00

Misc. income

Recoveries of Rent& Electricity 1,515,242.84 1,048,421.00

Other Receipts 237,654.57 275,923.00

4,686,180.13 1,724,009.00

Transferred to Expenditure During

Construction - Schedule 19 4,686,180.13 1,724,009.00

Total - -

SCHEDULE 15: EMPLOYEES’ REMUNERATION AND BENEFITS

Salaries, wages, bonus, allowances &

benefi ts 148,282,311.53 110,026,911.00

Contribution to provident fund and other

funds 9,343,938.41 12,283,672.00

Welfare expenses 9,810,761.39 13,387,581.00

167,437,011.33 135,698,164.00



Total - -

Amount (Rs)


01.04.2009 to 01.04.2008 to

SCHEDULE 16 : 31.03.2010 31.03.2009

ADMINISTRATION & OTHER EXPENSES

Repair & Maintenance

Buildings 1,727,677.98 4,140,738.00

P&M-power station 72,185,515.62 54,568,044.00

Others 45,351.00 1,131,042.00

Chemicals & Consumables 3,231,437.56 3,362,866.00

Training & Recruitment 254,205.00 27,866.00

Legal Expenses 252,913.00 100.00

Profession Charges and Consultancy Fees 1,006,572.00 3,290,912.00

Communication Expenses 2,677,138.57 1,717,402.00

Travelling Expenses 8,924,039.00 7,666,863.00

Tender Expenses 662,982.00 747,449.00

Auditors Remuneration

Fees 70,332.00

Out of Pocket Expenses 36,924.00 107,256.00 62,108.00

Advertisement Exp 54,850.00

Printing and Stationery 610,674.00 390,874.00

EDP Hire and Other Charges 170,264.00 105,802.00

Security Expenses 43,592,273.57 14,349,495.00

Entertainment Expenses 389,406.00 153,969.00

Expenses for Guest House 3,535,124.15 2,742,061.00

Books and Periodicals 75,010.00 10,035.00

Stipend - -

Education Expenses - -

Rent 616,372.00 1,144,000.00

Plant & Machinery written off 180,615.00

Insurance 5,316,032.20 98,363.00

Rates & Taxes 764,786.00 338,861.00

Miscellaneous expenses

Expenses on Hiring of

Vehicles 4,252,027.76 4,261,475.00

Other Expenses 846,080.34 1,741,994.00

Prov. For Unserviceable Store 447,120.00 546,522.00

Prov. For Shortage store 40,495.00

151,785,602.75 102,779,456.00



741,820.00 27,866.00

SCHEDULE 17:


Interest on loan from Holding

Company 34,451,208.00 41,861,587.00

Interest on Cash Credit from

SBI 5,947,881.00 139,073.00

Interest as per IT Act 9,130.00 -

Bank Charges 1,361,042.00 1,156,473.00

41,769,261.00 43,157,133.00

Less: Interest and Finance charges

transferred to EDC - Schedule 19 41,760,131.00 43,157,133.00

Total 9,130.00 -

SCHEDULE 18: PRIOR PERIOD INCOME/EXPENDITURE(NET)

Expenditure

Depreciation 10,811,327.00 -

Salary & Wages 22,883,961.00 -

Total 33,695,288.00 -

Less: Transferred to EDC 33,695,288.00 -


Amount (Rs)


01.04.2009 to 01.04.2008 to

31.03.2010 31.03.2009

SCHEDULE 19:


A. Employees Remuneration and Other Benefi ts

Salaries, Wages, Allowances and Benefi ts 148,282,311.53 110,026,911.00

Contribution to provident and other funds 9,343,938.41 12,283,672.00

Welfare Expenses 9,810,761.39 13,387,581.00

Total (A) 167,437,011.33 135,698,164.00

B. Admn & Other Expenses


Buildings 1,727,677.98 4,140,738.00

P&M-station 72,185,515.62 54,568,044.00

Others 45,351.00 1,131,042.00

Chemicals & Consumables 3,231,437.56 3,362,866.00

Legal Expenses 252,913.00 100.00

Profession Charges and Consultancy Fees 1,006,572.00 3,290,912.00

Communication Expenses 2,677,138.57 1,717,402.00

Travelling Expenses 8,924,039.00 7,666,863.00

Tender Expenses 662,982.00 747,449.00

Audit Fee 107,256.00 62,108.00

Advertisement Exp 54,850.00 -

Printing and Stationery 610,674.00 390,874.00

EDP Hire and Other Charges 170,264.00 105,802.00

Security Expenses 43,592,273.57 14,349,495.00

Entertainment Expenses 389,406.00 153,969.00

Expenses for Guest House 3,535,124.15 2,742,061.00

Books and Periodicals 75,010.00 10,035.00

Education Expenses - -

Rent 616,372.00 1,144,000.00

Plant & Machinery written off 180,615.00

Insurance 5,316,032.20 98,363.00

Rates & Taxes 764,786.00 338,861.00

Miscellaneous expenses

Expenses on Hiring of Vehicle 4,252,027.76 4,261,475.00

Other Expenses 846,080.34 1,741,994.00

Total (B) 151,043,782.75 102,205,068.00

C. Depreciation 16,273,605.96 11,842,810.00

Total (A+B+C) 334,754,400.04 249,746,042.00

D. Interest and Finance Charges

Interest on loan from Holding Company 34,451,208.00 41,861,587.00

Interest on Cash Credit from SBI 5,947,881.00 139,073.00

Interest as per IT Act - -

Finance Charges 1,361,042.00 1,156,473.00

Total (D) 41,760,131.00 43,157,133.00

E. Fringe Benefi t Tax - 1,290,797.00

G. Prior period Exp 33,695,288.00

H. Other receipts 4,686,180.13 1,724,009.00

GRAND TOTAL (A+B+C+D+E+F-G) 405,523,638.91 292,469,963.00

Schedule-20

Notes on Accounts:

1. The name of the Company has been changed to “Kanti Bijlee Utpadan Nigam

Limited” (KBUNL) (formerly known as Vaishali Power Generating Company

Limited) vide Registrar of Companies, National Capital Territory of Delhi &

Haryana’s certifi cate dated 10th April 2008.

2. In terms of transfer notifi cation dated 08.09.2006 issued by Government of

Bihar, Muzaffarpur Thermal Power Station of Bihar State Electricity Board (BSEB)

was vested in Kanti Bijlee Utpadan Nigam Limited (Formerly known as Vaishali

Power Generating Company Limited) w.e.f. 8th September 2006. As per

terms of notifi cation, all assets of the Station (excluding Land which has been

transferred on 33 years Lease) have been vested in KBUNL in lieu of purchase

consideration of Rs.88,40,75,367/- based on the report dt. 25.12.2009 of M/s

Thakur Vaidyanath Aiyer & Co., Chartered Accountants, Patna. Life Insurance

Corporation of India had a charge of Rs.57.10 crore on these transferred assets,

which has been vacated on 29-03-2008, on payment of Rs. 57.10 crores to LIC

by the Holding Company NTPC Ltd as per the transfer notifi cation. Fully paid

up share have been issued to NTPC and BSEB in lieu of purchase consideration

to the extent of Rs.88,40,75,370/- (NTPC no. of Share 5,71,00,000- value

Rs. 57,10,00,000/-& BSEB no of Share 3,13,07,537- value Rs.31,30,75,370/-

respectively) as per the resolution of KBUNL Board, in their 18th meeting dt. 6th

March,2010 .

3. On allocation of depreciated book value of assets, & assessment of their

residual useful life as on transfer date by M/s Thakur Vaidyanath Aiyer & Co.,

Chartered Accountants, Patna, the depreciation has been charged in the

accounts of 2009-10 prospectively for the remaining life of the assets.

4. BSEB vide their letter dt.03.03.2009 requested that M/s PGCIL has created

switch yard assets worth Rs. 3,85,33,287/- to be considered in transfer value.

Pending receipt of details sought from BSEB the switch yard assets worth Rs.

3,85,33,287/- have been accounted in CWIP through credit to Sundry Creditors

for Capital Expenditures the amount payable to BSEB for transfer Value of assets.

5. Both the units of the transferred station are under renovation & modernization

since the date of transfer (and not in operation). The plant & machinery

comprised in the assets therefore has been accounted as CWIP. From 29-

01-08 unit no. 02 (1 x 110 MW) after restoration & refurbishment is on trial

operation for attaining stability in operation. The infi rm power generated

from the unit-02 (1 x 110 MW) of plant during the stability period has been

accounted at mutually agreed rate of Rs. 3.65 p/kwh between BSEB & KBUNL

.Charges accrued and related expenses including fuel & other direct expenses

during stabilization period has been accounted as pre-commissioning

income/expenditure. In fi rm power sent out during the F.Y.-(2009-10) 396 MU

(previous year 189MU).

6. As per the MOU dt.9th May 2006, Govt. of India sanctioned a grant of Rs.350.00

crore through Govt of Bihar for renovation & modernization of the taken over

station under RSVY grant. M/s BHEL has been paid an advance of Rs.172.50

crores till 31.03.2010 and KBUNL has been paid Rs. 15 crores out of the

sanctioned amount and the same have been accounted as ‘Grants-in-Aid’ in

Schedule 2 as Capital Reserve.

7. Estimated amount of contracts remaining to be executed on Capital account

and not provided for is Rs. 139.12 cores (Previous Year 152.57 Crores).

8. Earning per share :-

The elements considered for calculation of Earning per Share (Basic and

Diluted) are as under:

Current year Previous year

Net Profi t after tax used as numerator (Rs) (750950) (27866)

Weighted average number of equity shares

used as denominator

5913098 100000

Earning per share Rupees (0.13) (0.28)

Diluted (Earning less than paise one) - -

Face value per share (Rupees) 10/- 10/-

9. a) Licensed capacity – Not applicable.

b) Installed capacity – 2x110 MW (Since 29-01-08 one unit no. 02 is in trial

operation).

10. Figures have been rounded off to nearest rupee.

11. Previous year fi gures have been regrouped /rearranged wherever necessary.

12 . a) Balances shown under advances, creditors and material lying with

contractors and material issued on loan in so far as these have since

not been realized/discharged or adjusted are subject to confi rmation/

reconciliation and consequential adjustment, if any.

b) In the opinion of the management, the value of current assets, loans and

advances on realization in the ordinary course of business, will not be

less than the value at which these are stated in the Balance Sheet.

13. Operating leases-

The Company’s signifi cant leasing arrangements are in respect of operating

leases of Premises for residential use of employees and offi ces. These leasing

arrangements are usually renewable on mutually agreed terms but are not non-

cancellable.Employees’ remuneration and benefi ts include Rs.53,50,828/-

(Previous Year Rs.20,10,230/-) towards lease payments, net of recoveries, in

respect of premises for residential use of employees. Lease payments in respect

of premises for offi ces are shown as Rent in Schedule 16 - Administration and

Other expenses.

14. Quantitative information in respect of Generation and Energy sent out during

Pre-Commissioning period (in MUs):

Current Year Previous Year.

Generation (MUs) 461 226

Energy Sent Out (MUs) 396 189

15. Information pursuant to Ministry of Environment & Forest notifi cation no. s. o.

2804(E) New Delhi the 3rd November, 2009 for ash:

(i) Unit no. (1*210MW ) is under trial operation .


(ii) Only slurry ash generated (1.80 Lacs.MT) & there is no sale of ash.

(iii) Efforts are on for use of Pond & Slurry ash by road Construction authorities

/brick manufacturers as per above notifi cation guidelines.

(iv) For use of Pond ash work shop was organized on 06.02.2010 with brick

manufacturers and others.

16. Information pursuant to Part IV of Schedule VI of the Companies Act, 1956.




Date Month Year




N I L N I L


N I L N I L



3 4 5 7 9 1 1 3 4 5 7 9 1 1

Source of Funds


8 8 5 0 7 5 1 8 7 4 1 2 8


3 8 3 7 3 2 N I L



3 1 6 2 7 0 9 N I L


2 4 0 2 6 N I L



N I L 7 5 1

Profi t/Loss before Tax Profi t/Loss after Tax

- 7 5 1 - 7 5 1


- 0 . 1 3 N I L




G E N E R A T I O N O F E L E C T R I C I T Y N A



For GRA & AssociatesChartered Accountants

(Rohit Gupta) (Ruchi Agarwal) (R.K.Sharma) (R.S.Sharma)Partner Company Secretary Director Chairman

M. No 091710

Place: New Delhi


CASH FLOW STATEMENT FOR THE YEAR ENDED 31 st MARCH 2010

Amount (Rs)


01.04.2009 to 01.04.2008 to

31.03.2010 31.03.2009


Net Loss before tax and Prior Period Adjustments (750,950.0) (27866)

Adjustment for:

Preliminary Expenses written off - -

Operating Profi t before Working Capital Changes (750,950.0) (27,866)

Adjustment for:

Trade Payables & Other

Liabilities (172103767) 58331473

Debtors (89497452) 111519070

Other Current Assets (2277424) (317331)

Inventories 21199180 (23191459)

Loans & advances 116566353 (69877132)

Cash generated from operations (126,113,110.0) 76464621

Net Cash from Operating Activities - A (126,864,060.0) 76436755

Income Tax/Advance TaxPaid (668,677.0) (1353113)


Fixed Capital Expenditure (906,900,091.0) (119728390)

Preliminary Expenses - -

Net Cash Flow from Investing Activities - B (906,900,091.0) (119728390)


Proceeds from Loan 63,045,351.0 105714286

Grants-in-aid received 750,000,000.0 -

Proceeds from Issue of Share Capital/Share

Capital Deposit 313,075,370.0 43800000

Net Cash Flow from Financing Activities-C 1,126,120,721.0 149514286

Net increase/Decrease in cash and cash equivalents (A+B+C) 91,687,893.0 47843435

Cash and cash equivalents (Opening Balance) 49,174,518.0 1331083

Cash and cash equivalents (Closing Balance) 140,862,411.46 49174518





(Rohit Gupta) (Ruchi Agarwal) (R.K.Sharma) (R.S.Sharma)Partner Company Secretary Director Chairman

M. No 091710

Place: New Delhi


AUDITOR’S REPORT

To the Members of

KANTI BIJLEE UTPADAN NIGAM LTD.

(Formerly Vaishali Power Generating Company Ltd.)

1. We have audited the attached Balance Sheet of KANTI BIJLEE UTPADAN

NIGAM LTD. (Formerly Vaishali Power Generating Company Ltd.) (a Subsidiary

of NTPC Ltd.) as at 31st March 2010, the Profi t and Loss Account and also

the cash fl ow statement for the period ended on that date annexed thereto.

These fi nancial statements are the responsibility of company’s management.

Our responsibility is to express an opinion on these fi nancial statements based

on our audit.

2. We conducted our audit in accordance with auditing standards generally

accepted in India. Those standards require that we plan and perform the audit

to obtain reasonable assurance about whether the fi nancial statements are

free of material misstatement. An audit includes examining, on a test basis,



estimates made by the management, as well as evaluating the overall fi nancial


for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 issued by the

Central Government of India in terms of sub section (4A) of the section 227 of

the Companies Act 1956, we enclose in annexure a statement on the matters

specifi ed in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to above, we report that :

(a) We have obtained all the information and explanations, which to the

best of our knowledge and belief were necessary for the purpose of our

Audit.

(b) In our opinion proper books of account, as required by law, have been

kept by the Company so far as it appears from our examination of such

books.

(c) The Balance Sheet, Profi t and Loss Account and Cash Flow Statement

dealt by this report are in agreement with the books of accounts.

(d) In our opinion, the Balance Sheet, Profi t and Loss Account and Cash

Flow Statement, subject to notes to accounts annexed thereto, dealt

with by this report comply with the accounting standards referred to in

sub-section (3C) of section 211 of the Companies Act, 1956.

(e) Being a Government Company, pursuant to the Notifi cation No. GSR

829(E) dated 17.07.2003 issued by Government of India. Provision of

clause (g) or sub-section (1) of section 274 of the Companies Act, 1956


(f) In our opinion and to the best of our information and according to the

explanation given to us, the said accounts give the information required

by the Companies Act 1956, in the manner so required and give a true

and fair view in conformity with the accounting principles generally

accepted in India : -

(i) in the case of the Balance Sheet, of the state of the affairs of the

Company as at 31st March, 2010


(ii) in the case of the Profi t & Loss Account, of the loss of the Company

for the period ended on that date and

(iii) In the case of Cash Flow Statement, of the cash fl ow for the period

ended on that date.



(Rohit Gupta)


Date : 12-05-2010 M. No. 091710

ANNEXURE TO AUDITORS’ REPORT{Referred to in paragraph (3) of our report of even date}

Re : KANTI BIJLEE UTPADAN NIGAM LTD.

(Formerly Vaishali Power Generating Company Ltd.)

(i) (a) The company has been formed to take over the assets of Muzaffarpur

Power Station from BSEB, the fi xed assets records of the same has been

maintained and physical verifi cation has been done. However in case of

purchases made by the company, the records regarding the same are

being maintained. In view of the above the company has maintained

proper records showing full particulars including quantitative details

and situation of fi xed assets.

(b) There is a regular program of verifi cation, which, in our opinion, is

reasonable having regard to the size of the company and the nature of

its assets and according to the information and explanations given to us

no material discrepancies were noticed on such verifi cation.

(c) During the year under reference there has been no substantial disposal

of fi xed assets of the company.

(ii) (a) The company has been formed to take over the assets of Muzaffarpur

Power Station from BSEB, the fi xed assets records of the same has been

maintained and physical verifi cation has been done. However in case of

purchases made by the company, the records regarding the same are

being maintained In view of this inventory has been physically verifi ed

during the year by the management. In our opinion, the frequency of

verifi cation is reasonable.

(b) The procedures of physical verifi cation of inventory followed by the

management are reasonable and adequate in relation to the size of the

company and the nature of its business.

(c) The company is maintaining proper records of inventory. The

discrepancies noticed on verifi cation between the physical stocks and

the book records were not material.

(iii) (a) The company has not granted any loans, secured or unsecured to

companies, fi rms or other parties covered in the register maintained

under section 301 of the Act.

(b) Not Applicable.

(c) Not Applicable.

(d) Not Applicable.

(e) The company has taken secured loan from NTPC its holding company. The

maximum amount involved during the year was Rs.30,57,14,286/- and the

year-end balance of loans taken from such party was Rs.26,28,57,144/-.

(f) In our opinion, the rate of interest and other terms and conditions on

which loans have been taken from the companies, fi rms or other parties

listed in the register maintained under section 301 of the Companies Act,

1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated

and has been regular in the payment of interest.

(iv) In our opinion and according to the information and explanations given to us,

there are adequate internal control procedures commensurate with the size

of the company and the nature of its business with regard to purchases of

inventory, fi xed assets and sale of goods and services. During the course of

our audit, we have not observed any continuing failure to correct any major

weaknesses in internal control system.

(v) (a) According to the information and explanations given to us, we are of the

opinion that there are no transactions that needed to be entered into the

register maintained under section 301 of the Companies Act, 1956.

(b) Not Applicable.

(vi) In our opinion and according to the information and explanations given to us,

the company has not accepted any deposits, from the public, covered by the

directives issued by the Reserve Bank of India, the provisions of section 58-A,

58AA or any other relevant provisions of the Companies Act, 1956 and rules

framed thereunder. No order has been passed by the Company Law Board or

National Company Law Tribunal or Reserve Bank of India or any Court or any

other Tribunal.

(vii) In our opinion, the company has an internal audit system commensurate with

the size and nature of its businesss.

(viii) According to the information and explanation given to us and on the basis

of records produced for our verifi cation, we are of the opinion that the

maintenance of cost records under Section 209(1)(d) of the Companies Act,

1956, are not applicable on the company.

(ix) (a) According to the information and explanations given to us, the company

is regular in depositing with appropriate authorities undisputed statutory

dues including provident fund, investor education protection fund, and

employees state insurance, income tax, sales tax, Wealth Tax, Service

tax, custom duty, excise duty, cess and other material statutory dues

applicable to it.

According to the information and explanations given to us, no

undisputed amounts payable in respect of income tax, wealth tax, sales

tax, customs duty, excise duty and cess were in arrears, as at the last day

of the fi nancial year, for a period of more than six months from the date

they became payable.

(b) According to the information and explanation given to us, there are no

dues of Income tax, Sale tax, Wealth tax, Service tax, Custom duty, Excise

duty and cess which have not been deposited on account of any dispute.

(x) Not applicable as the company has been formed only on 6th September, 2006

and a period of more than fi ve years has not elapsed since its registration.

(xi) In our opinion and according to the information and explanations given to us,

the company has not defaulted in repayment of dues to a fi nancial institution, bank

or debenture holders.

(xii) The company has not granted any loans or advances on the basis of security by

way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to the information and explanation given to us,

the company is not a chit fund or a nidhi / mutual benefi t fund / society. Therefore,

the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 are

not applicable to the company.

(xiv) According to the information and explanations given to us, the company is

not dealing in or trading in shares, securities, debentures and other investment.

Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor’s Report)

Order, 2003 are not applicable to the company.

(xv) According to the information and explanations given to us, the company has

not given guarantees for loans taken by others from banks or fi nancial institutions.

(xvi) In our opinion and according to the information and explanations given to us,

the term loans have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information and explanations given to us

and on an overall examination of the balance sheet of the company, we report that

the no funds raised on short-term basis have been used for long-term investment.

(xviii) According to the information and explanations given to us, the company has

not made any preferential allotment of shares to parties and companies covered in

the register maintained under section 301 of the Act, during the year under reference.

(xix) According to the information and explanations given to us the company has

not issued any debentures.

(xx) According to the information and explanation given to us the company has not

raised any money by way of public issues.

(xxi) According to the information and explanations given to us, no fraud on or by




(Rohit Gupta)


Date : 12-05-2010 M. No. 091710

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619 (4) OF THE COMPANIES ACT, 1956, ON THE ACCOUNTS OF KANTI BIJLEE UTPADAN NIGAM LTD., NEW DELHI FOR THE YEAR ENDED 31 MARCH 2010.

The preparation of fi nancial statements of KANTI BIJLEE UTPADAN NIGAM LTD., New

Delhi, for the year ended 31 March 2010 in accordance with the fi nancial reporting

framework prescribed under the Companies Act, 1956, is the responsibility of the

management of the Company. The statutory auditors appointed by the Comptroller

and Auditors General of India under Section 619(2) of the Companies Act, 1956, are

responsible for expressing opinion on these fi nancial statements under Section 227

of the Companies Act, 1956, based on independent audit in accordance with the

auditing and assurance standards prescribed by their professional body the Institute

of Chartered Accountants of India. This is stated to have been done by them vide

their Audit Report dated 12th May 2010.

I, on behalf of the Comptroller and Auditors General of India, have decided not

to review the report of the statutory auditors’ on the accounts of KANTI BIJLEE

UTPADAN NIGAM LTD., New Delhi for the year ended 31 March 2010 and as such

have no comments to make under Section 619(4) of the Companies Act, 1956.

Place: New Delhi




(M. K. Biswas)




BHARTIYA RAIL BIJLEE COMPANY LIMITED

DIRECTORS’ REPORT

Dear Members,

Your Directors have pleasure in presenting the Third Annual Report on the working of

the Company together with Audited Accounts and Auditors’ Report thereon for the

year ended 31st March 2010.

OPERATIONAL REVIEW

For setting up 4X250 MW Power Project at Nabinagar, Bihar, 1249.11 acres of land

has been handed over by the Government of Bihar during the year 2009-10 and the

cumulative land holding of the Company as on 31st March 2010 is 1259.62 acres.

Bandobasti Land (Phase II) of 68.5375 acres for which Sec 4 was done on 10.6.09 is

under re-verifi cation by DM-Aurangabad. Possession of this land is expected shortly.

Further requisition of Makeup water Corridor (39.3775 acre), Additional land for Ash

Dyke (50.3125 acre), Left land under main plant and township area (82.7575 acre)

and Left land under ash pond area (50.00 acre) i.e. approx 220 acre land requisition

is pending with district administration. Due to poor land records and non-

availability of Govt staff verifi cation work land acquisition is getting delayed.

Further land is to be acquired for MGR corridor for which DPR is to be fi nalized by

Rites. In a bid to reduce project cost Rites has been advised to explore whether

single line connection from Nabinagar station is feasible instead of Double line

Railway Corridor as was proposed by them. Once this is fi nalized land for MGR

corridor shall be surveyed and thereafter requisition shall be submitted for land

acquisition.

Infrastructure civil works has already started and considerable progress has been

achieved in site leveling job. Also construction of boundary wall, offi ce building and

store shed has been started. Your Company has also awarded Main plant civil works &

chimney package in which the agency has mobilized site. Other main packages like 400

KV switchyard, power transformer, LT & HT switchgear etc have also been awarded.

Balance packages are in different stage of award by our consultant NTPC limited.

As of now the schedule of Boiler Erection for Unit#1 was June 2010 as against the

originally targeted for October 2008. The schedule for synchronization of fi rst unit of

250 MW is in Feb’ 12 which is likely to slip due to delay in land acquisition.

Your Company has also commenced the work for the enabling township with award

of construction of fi eld hostel, township boundary wall and CISF barracks. Estimate

of main township is under preparation.

The company had in June’ 09 obtained permission from court for certain premises

of Rohtas Industries Limited (which is under liquidation) at Dalmianagar on rent for

accommodation of employees and offi ce space. The possession of the buildings

has been taken in March’ 10 and work of its repairs is under progress which is likely to

take 3-4 months. Dalmianagar is about 30-35 kms away from the project site whereas

Aurangabad town where our employees are presently staying in different hotels is

about 55 kms away.

Your company has approved Rs. 50 lac for Initial Community Development in the

affected villages through which activities like providing solar lights etc have been

taken up. With a view to improve the employability of the village youth and also

to improve availability of skilled manpower around project, your company has

approved setting up of ITI in the locality. A public information centre and mobile

heath clinic is functioning effectively. Scholarships worth Rs. 8.5 lac has been

disbursed to Project Affected Person for pursuing various ITI courses.

FINANCIAL REVIEW

The fi nancial highlights of the Company for the year ended on 31st March 2010 are

as under:-

(Rs. Crore)

Particulars Fiscal 2010 Fiscal 2009


Share Capital Deposit Pending Allotment 146.15 101.11

Net Block 146.41 0.45

Capital Work in Progress 82.44 23.26


Current Assets, Loans and Advances 19.91 19.71

Current Liabilities 9.66 2.76

Net Current Assets 10.25 16.95

Profi t and Loss (0.49) (0.47)

Earning Per Share (0.00) (0.03)

The fi nancial statements and the performance of the Company have been discussed

in the Management Discussion & Analysis section which is at Annex-1 to this

Report.

AUDIT COMMITTEE

An Audit Committee of the Board of Directors of the Company was constituted

in accordance with Section 292A of the Companies Act, 1956 comprising S/

Shri Chandan Roy, A.K. Singhal and Sudhir Kumar Saxena, Directors as members of

the Committee. During the period, three meetings of the Audit Committee were held

i.e. on 11.05.2009, 14.10.2009 and on 06.05.2010.

FIXED DEPOSITS

The Company has not accepted any fi xed deposit during the period ending 31st

March 2010.


The particulars of employees as prescribed under Sec. 217(2A) of Companies Act,

1956 read with the Companies (Particulars of Employees) Rules, 1975, who have

received remuneration more than Rs. 24,00,000/- if employed for the whole year

and Rs. 2,00,000/- per month if employed for part of the year, are given at Annex-2

to the Directors’ Report.

AUDITORS’ REPORT

The Comptroller & Auditor General of India through letter dated 20th August, 2009

has appointed M/s H.S. Madan & Co., Chartered Accountants as Statutory Auditors of

the Company for the Financial Year 2009-2010. The Statutory Auditors has submitted

their report and there is no adverse comment or remark in their report.

COMPTROLLER & AUDITOR GENERAL REVIEW

The Comptroller & Auditor General of India (C&AG) through letter dated 2nd June

2010 has conveyed that a supplementary audit was conducted under Section 619(3)

(b) of the Companies Act, 1956 of the fi nancial statements of the Company for the

year ended 31 March 2010. On the basis of audit nothing signifi cant has come to the

knowledge of C&AG which would give rise to any comment upon or supplement to

Statutory Auditors’ report under Section 619 (4) of the Companies Act, 1956.

As advised by the offi ce of the C&AG, the above comments of C&AG and

Management Replies’ thereto on the accounts for the year 2009-2010 are being

placed with the report of the Statutory Auditors.


As a measure to conserve energy, the Company has installed solar lights in the

affected villages. During the period under review the Company had no earning or

outgo in foreign exchange.


Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors confi rm that:

i) in the preparation of the annual accounts for the year ended 31st March 2010,

the applicable accounting standards have been followed alongwith proper

explanation relating to material departures;

ii) the Directors had selected such accounting policies and applied them

consistently and made judgments and estimates that are reasonable and


as at the end of 31st March 2010 and of the loss of the company for the said

period;

iii) the Directors had taken proper and suffi cient care for the maintenance of




iv) The Directors had prepared the annual accounts for the year ended 31st

March 2010, on going concern basis.

DIRECTORS

Shri K.B. Dubey ceased to be the Director of the Company w.e.f. 31.07.2009

consequent upon attaining the age of superannuation. Ms. Manju Gupta has also

ceased to be the Director of the Company w.e.f. 23.02.2010 consequent upon

nomination withdrawn by the Ministry of Railways.

NTPC has nominated Shri G.J. Deshpande, Executive Director, NTPC as a Director

on the Board of your Company in place of Shri K.B. Dubey. Ministry of Railways has

nominated Shri S.K. Saxena, Executive Director (EEM), Railways as the Director on the

Board of your Company in place of Ms. Manju Gupta. The Board of your Company

has appointed Shri G.J. Deshpande and Shri S.K. Saxena as Director on the Board

w.e.f. 14.10.2009 and 23.02.2010 respectively.

The Board wishes to place on record its deep appreciation for the valuable services

rendered by Shri K.B. Dubey and Ms. Manju Gupta during their association with your

Company.

As per the provisions of the Companies Act, 1956, Shri A.K. Singhal, Director shall

retire by rotation at the ensuing Annual General Meeting and being eligible, offers

himself for re-appointment.

ACKNOWLEDGEMENT:

Your Directors acknowledge with deep sense of appreciation for the co-operation

extended by Ministry of Power and Ministry of Railways.

Your Directors also convey their gratitude to the Holding Company i.e. NTPC Ltd.,

Auditors, Bankers, contractors, vendors and consultants of the Company.

We wish to place on record our appreciation for the untiring efforts and contributions

by the employees at all levels to ensure that the Company continues to grow and

excel.


PLACE: New Delhi (Chandan Roy)

DATE: 29.07.2010 Chairman


Annex-1 to the Directors’ ReportMANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY SECTOR AND DEVELOPMENTSGENERATIONExisting Installed CapacityAs the Indian economy continues to surge ahead, its power sector has been

expanding concurrently to support the growth rate. The demand for power is

growing exponentially and the scope for the growth of this sector is immense.

The total installed capacity in the country as on March 31, 2010 was 159,398.49 MW.

Existing GenerationThe total power generation in the country during the year 2009-10 was 771.173 BUs as

compare to 723.794 BUs generated during the last year registering a growth of 6.5%.

Demand and Supply PositionCurrently, the sector is characterised by acute power shortages. During the year, the

peak shortage was 13.3% and the energy shortage was 10.1%.

Capacity UtilisationCapacity utilisation in the Indian power sector is measured by Plant Load Factor (PLF).

The All-India PLF for the power sector was 77.48% during 2009-10.

SWOT ANALYSISStrength:- Reputed background of promoters

- Strong back up of Ministry of Railways and Government of Bihar

- NTPC Limited as a major stake holder

- NTPC as a consultant having wide experience in engineering and management

expertise from planning to commissioning and operating power plants

- BHEL as EPC contractor

- Initial Community Development measures like setting up ITI.

Weakness:- Land Acquisition

- Climatic condition of Bihar: Huge Rainfall and Floods

- Socio-economic condition of the area

- Non availability of adequate infrastructure facilities

- Lack of technically skilled and experienced local manpower

Opportunity:- Huge Demand of power by Bihar

- Increasing industrial development in Bihar

- Allocation of power to other States

Threats:

- Land Acquisition

- Rising prices of the feed stock

- Environmental concern for increasing pollution

- Clearances from various Authorities

- Security Concern as area is naxalite affected

OUTLOOKThe company’s outlook appears to be very bright and will get break even very

soon once the plant is commissioned and production is stabilized. It will generate

suffi cient revenue for the growth and development of the company vis-à-vis

employment opportunities to the local inhabitants.

RISK AND CONCERNThe risk to which company is exposed and the initiatives taken by the company to

mitigate such risks are given below:

Hazard risks are related to natural hazards arising out of nature of product/operation,

accidents and natural calamities like fi re, earthquake or cyclone etc.

Financial Risks are concerned with delayed realisation of sale proceeds from

Railways and BSEB, servicing of debt.

Operational risks are associated with systems, processes and people and cover

areas such as succession planning, attrition and retention of people, operational

failure or interruption, disruption in supply chain, failure of research & development

facilities and faulty application of information technology and non-compliance of

regulatory provisions.

As the company is in construction phase of project it is not exposed to all such

operational risks.

INTERNAL CONTROLThe Company has robust internal systems and processes for effi cient conduct of

business. It is following delegation of powers as is being followed in NTPC Limited.

The accounts are being prepared in accordance with the Accounting Standards

issued by Institute of Chartered Accountants of India from time to time and as

per the guidelines issued from NTPC Limited. The Company is in the process of

implementation of SAP in all modules like HR, Accounting, Engineering, etc. which

will help in retrieving data and maintaining systematic backup.

FINANCIAL DISCUSSION AND ANALYSISBhartiya Rail Bijlee Company Limited was incorporated on 22.11.2007 as a subsidiary

of NTPC Limited in joint venture with Ministry of Railways. NTPC holds 74% of equity

share capital of the Company and the balance 26% of the equity is held by Ministry

of Railways. The Company has been incorporated for providing power to Railways

by implementing 4X250MW Coal Based Thermal Power Plant at Nabinagar, Bihar.

Your Company has prepared the fi nancial statements on accrual basis of accounting

under historical cost convention in accordance with generally accepted accounting

principles in India and the relevant provisions of the Companies Act, 1956 including

accounting standards notifi ed thereunder.

During the Financial Year 2009-10, your company had allotted 15 crore shares of

Rs.10/- each to NTPC Ltd and Ministry of Railways in the ratio of 74:26. Share Capital

pending allotment amounted to Rs.71 crore and Rs.75 crore of NTPC Limited and

Ministry of Railways respectively. The gross assets comprising of tangible and

intangible assets amounted to Rs.146.88 crore and after charging depreciation of

Rs. 0.47 crore, the net block was Rs. 146.41 crore. The expenses relating to training have

been charged to Profi t and Loss Account. Except the training expenses, employees

remuneration & benefi ts, administration & other expenses, depreciation, interest

& fi nance charges amounting to Rs.12.73 crore have been charged to Expenditure

During Construction Account and transferred to Capital Work-in-progress.

Your Company has completed fi nancial closure for the project by tying up loan of Rs.

2248 crore and Rs. 1498.75 crore from Power Finance Corporation Limited and Rural

Electrifi cation Corporation Limited respectively.

The Company has engaged NTPC Consultancy Wing as its Consultant for pre-award

and post-award activities from concept to commissioning of the project at a total

contract price of Rs.76 crore, out of which Rs. 31.69 crore payment has been made

to NTPC this year.

Your Company has paid Rs. 255.94 crore to BHEL for main plant equipment supply

packages. This amount has been included under the head construction, stores and

advances.

During the year your company has paid Rs. 8.5 lac to poor students of project

affected families for pursuing ITI courses.

The Chief Executive Offi cer of the Company were paid Rs. 29.61 lac towards salaries,

allowances, contribution to PF, gratuity and other benefi ts during the year in addition to

benefi t of use of car for offi cial and personal purposes on payment of Rs. 780 per month.

HUMAN RESOURCEPresently, the Company has total strength of 80 employees, out of which, 79

employees have been deputed from the Holding Company i.e. NTPC Limited and 1

employee has been deputed from Ministry of Railways. As a socially responsible and

socially conscious organisation the company has deployed 13 SC employees and 6

ST employees out of the total strength.

The Company is paying adequate perks to the employees. They are being imparted

training for their professional up gradation from time to time and as an endeavour of

being a learning organisation.

The Company had paid Rs. 8.63 Cr towards Salaries, Wages, Allowances, Benefi ts,

Contribution to Provident and other Funds and welfare expenses.

ENVIRONMENTAL PROTECTION AND CONSERVATION, TECHNOLOGICAL CONSERVATION, RENEWABLE ENERGY DEVELOPMENTS, FOREIGN EXCHANGE CONSERVATIONThe Company is using solar lights in the affected villages as a measure to conserve

energy. During the period under review the Company had no earning or outgo in

foreign exchange.

CORPORATE SOCIAL RESPONSIBILITYThe Company has opened public information centre and mobile health clinic for

public in and around the project. Scholarships worth Rs. 8.5 lac has been disbursed

to Project Affected Persons for pursuing ITI courses.

CAUTIONARY STATEMENTIt is clarifi ed that the actual results may vary materially from those expressed or

implied in the Management Discussion & Analysis due to risks or uncertainties

associated therewith depending upon economic conditions, government policies

and other incidental factors.


Place: New Delhi (Chandan Roy)


Annex-2 to Directors’ Report

Particulars of Employees pursuant to Section 217(2A) of the Companies Act, 1956.

Name Designation

& nature of

duties

Remun-

eration

Quali-

fi cation

Date of

commencement

of employment

Exp

Yrs

Age

Yrs

Last

Emp

Remarks

1 2 3 4 5 6 7 8 9

Employed for whole of the Year

De Dipak Kr DGM (ME) 25,58,276 BE (Mech) 29.11.85 24 51 SAIL -

Shrivastav R R AGM (Proj Coord) 26,41,841 BE (Elect) 15.01.78 31 53 - -

Employed for the part of the Year

Das P K GM (Proj) 38,11,153 BE (Mech) 26.11.79 30 50 - Resigned

Krishna

Gopal

CEO 46,05,235 BE (Elect) 24.11.80 29 60 DVC Retired

Sen S S CEO 4,26,456 BE (Elect) 18.11.81 28 53 - -

Michael G V DGM

(Civil)

2,13,029 BE (Civil) 12.04.84 25 53 GDC Ltd -

Notes:

1 Persons named above are/ were employees of the Company.

2 Remuneration includes salary, allowances, leave encashment, leave travel

concession, payment for subsidized leased accommodation, reimbursement


of medical expenses to employees and employer’s contribution to Provident

Fund and other funds. However, it does not include the monetary value of

the medical treatment provided in the Company’s dispensaries/hospitals at

Project sites, since it can not be quantifi ed employees-wise. In addition,

the employees are entitled to gratuity/group insurance in accordance with

Company’s Rules.

3 None of the employees listed above is related to any director of the

company.

4 Remuneration mentioned above is inclusive of retirement /separation benefi ts

paid during the year and is not indicative of any regular remuneration structure

of employees of the Company.

5 None of the employees hold any equity in the Company.


Place: New Delhi (Chandan Roy)



ACCOUNTING POLICIES






2. USE OF ESTIMATES





information, actual results could differ from these estimates & assumptions

and such differences are recognized in the period in which the results are

crystallized.

3. FIXED ASSETS

3.1 Fixed Assets are carried at historical cost.

3.2 Intangible assets are recorded at their cost of acquisition.

3.3 Capital expenditure on assets not owned by the company is refl ected as

a distinct item in Capital Work-in-progress till the period of completion

and thereafter in the Fixed Assets.

3.4 Deposits, payments/liabilities made provisionally towards

compensation, rehabilitation and other expenses relatable to land in

possession are treated as cost of land.

3.5 In the case of assets put to use, where fi nal settlement of bills with

contractors is yet to affected, capitalization is done on provisional basis

subject to necessary adjustment in the year of fi nal settlement.

4. CAPITAL WORK IN PROGRESS

4.1 In respect of supply-cum-erection contracts, the value of supplies

received at site and accepted is treated as Capital Work-in-Progress.

4.2 Deposit work/cost plus contracts are accounted for on the basis of

statements of account received from the contractors.

5. FOREIGN CURRENCY TRANSACTION

5.1 Foreign currency transactions are initially recorded at the rates of

exchange ruling at the date of transaction.

5.2 At the balance sheet date, foreign currency monetary items are

reported using the closing rate, Non-monetary items denominated in

foreign currency are reported at the exchange rate ruling at the date of

transaction.


6.1 EXPENDITURE

6.1.1 Depreciation on Fixed Assets is charged on straight line method at the

rates specifi ed in schedule XIV of the Companies Act, 1956 except for

the following at the rates mentioned below:

a) Kutcha Roads 47.50%

b) Enabling works- residential buildings including their internal

electrifi cation. - non-residential buildings including their internal

Electrifi cation, water supply, sewerage & drainage Works, railway sidings, aerodromes, helipads and airstrips.

06.33%

19.00%

c) Personal computers and Laptops including

peripherals

19.00%

d) Photocopies and Fax Machines 19.00%

e) Air conditioners, water coolers and Refrigerators 08.00%

6.1.2 Depreciation on additions to/ deductions from fi xed assets during the



6.1.3 Assets costing up to Rs.5000/- are fully depreciated in the year of

acquisition.

6.1.4 Cost of software recognized as intangible asset, is amortised on straight


earlier.

6.1.5 Expenses incurred on training are charged to revenue.

6.1.6 Preliminary expenses on account of new projects incurred prior to


6.1.7 Prepaid expenses and prior period expenses/income of items of

Rs.1,00,000/- and below are charged to natural heads of accounts.


A provision is recognised when the company has a present obligation as a




to settle the obligation at the Balance Sheet date and are not discounted to


the management/independent experts. These are reviewed at each Balance

Sheet date and are adjusted to refl ect the current management estimate.



prescribed in Accounting Standard (AS) 3 on ‘Cash Flow Statement’.


BALANCE SHEET AS AT 31ST MARCH, 2010

Amount (Rs.)

SCHEDULE 31.03.2010 31.03.2009

NO.

SOURCES OF FUNDS


Capital 1 4,000,000,000 2,500,000,000

Share Capital Deposit 2 1,461,539,000 1,011,148,000

TOTAL 5,461,539,000 3,511,148,000


FIXED ASSETS 3

Gross Block 1,468,794,303 5,812,868

Less: Depreciation 4,670,802 1,333,443

Net Block 1,464,123,501 4,479,425

Capital Work-in-Progress 4 824,359,877 232,555,358

Construction Stores And Advances 5 3,065,676,691 3,099,915,336

5,354,160,069 3,336,950,119


Cash and Bank Balances 6 193,844,317 195,426,361

Other Current Assets 7 184,396 29,353

Loans & Advances 8 5,102,227 1,642,025

199,130,940 197,097,739

LESS: CURRENT LIABILITIES AND PROVISIONS

Liabilities 9 96,639,613 26,838,622

Provisions 10 - 780,486

96,639,613 27,619,108

Net Current Assets 102,491,327 169,478,631

Profi t and Loss Account 4,887,604 4,719,250

TOTAL 5,461,539,000 3,511,148,000


Schedules 1 to 16 and accounting policies form an integral part of accounts


As per our Audit Report of even date

For H.S. MADAN & CO.,


H.S. MADAN S.S. SEN S.K. SAXENA CHANDAN ROY

Partner CEO Director Chairman

M. No. 09036

Place :Delhi

Date : 08.05.2010


BHARTIYA RAIL BIJLEE COMPANY LIMITEDPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010

Amount (Rs.)

SCHEDULE

NO.


INCOMEOther Income 11 - -

TOTAL - -

EXPENDITUREEmployees Remuneration and Benefi ts 12 - -

Administration and other expenses 13 168,354 3,891,180

Depreciation - -

Interest and Finance Charges 14 - -

TOTAL 168,354 3,891,180

Profi t / (Loss) before Tax (168,354) (3,891,180)

Provision for :

Fringe Benefi t Tax

Current Year - 407,694

Earlier Year 9,998 -

Less:

Fringe Benefi t Tax transferred to

Expenditure during Construction 9,998 407,694

Profi t / (Loss) After Tax (168,354) (3,891,180)

Balance(Loss) brought forward (4,719,250) (828,070)

Balance (Loss) carried to Balance Sheet (4,887,604) (4,719,250)

Expenditure During Construction 15

Earning Per Share (Equity Shares,

face value Rs.10/-each)

- Basic and Diluted (Rs.) (0.0) (0.03)


Schedules 1 to 16 and accounting policies form an integral part of accounts

For and on behalf of Board of Directors As per our Audit Report of even date For H.S. MADAN & CO., Chartered AccountantsH.S. MADAN S.S. SEN S.K. SAXENA CHANDAN ROY

Partner CEO Director Chairman M. No. 09036Place :DelhiDate : 08.05.2010

SCHEDULES FORMING PART OF ACCOUNTS

31.03.2010 31.03.2009

Amount (Rs.) Amount (Rs.)

SCHEDULE - 1

CAPITAL

AUTHORISED

160,60,00,000 equity shares of Rs.10/- each 16,060,000,000 16,060,000,000

(Previous Year: 160,60,00,000 equity shares

of Rs.10/- each)

ISSUED, SUBSCRIBED AND PAID-UP

40,00,00,000 equity shares of Rs.10 each

fully paid-up (29,60,00,000 equity shares

fully paid-up held by NTPC Ltd and their

nominees and 10,40,00,000 equity shares

fully paid-up held by Ministry of Railways,

Govt of India and their nominees) 4,000,000,000 2,500,000,000

(Previous year : 25,00,00,000 equity shares

of Rs.10 each fully paid-up consisting of

18,50,00,000 shares fully paid-up held by

NTPC Ltd and their nominees and 6,50,00,000

shares fully paid-up held by Ministry of

Railways, Govt of India and their nominees)

Total 4,000,000,000 2,500,000,000

SCHEDULE - 2

SHARE CAPITAL DEPOSIT

(Amount received pending allotment)

NTPC Ltd. 711,539,000 571,148,000

Ministry of Railways, Govt. of India. 750,000,000 440,000,000

Total 1,461,539,000 1,011,148,000

SCHEDULE - 3

FIXED ASSETS Amount (Rs)

GROSS BLOCK DEPRECIATION NET BLOCK

As at

01.04.09

Additions Deductions/

AdJustments

As at31.03.2010

As at

01.04.09

For the

year

Deductions/

AdJustments

Upto31.03.2010

As at31.03.10

As at

31.03.09

TANGIBLE ASSETSLAND

-Freehold 2,385,515 1,436,038,701 - 1,438,424,216 - - - - 1,438,424,216 2,385,515

Roads, Bridges & Culverts 108,192 305,673 - 413,865 51,391 111,889 - 163,280 250,585 56,801

Temporary Erections 1,088,370 3,200,426 - 4,288,796 1,088,370 2,023,252 - 3,111,622 1,177,174 -

Water Supply, Drainage &

Sewerage system - 21,400 - 21,400 - 4,067 - 4,067 17,333 -

Furniture, Fixtures & Other

Offi ce Equipments 942,628 5,012,768 58,400 5,896,996 110,628 630,707 9,348 731,987 5,165,009 832,000

EDP Equipments 229,884 1,592,002 54,436 1,767,450 52,267 299,533 17,565 334,235 1,433,215 177,617

Construction Equipment - 15,725,333 - 15,725,333 - 148,211 - 148,211 15,577,122 -

Electrical Installations 1,036,479 635,418 - 1,671,897 18,320 95,742 - 114,062 1,557,835 1,018,159

Communication Equipments 9,800 156,236 - 166,036 9,800 619 - 10,419 155,617 -

Laboratory & Workshop

Equipments - 7,784 - 7,784 - 7,784 - 7,784 - -

INTANGIBLE ASSETS - - - - - - - - - -

Software 12,000 398,530 - 410,530 2,667 42,468 - 45,135 365,395 9,333

TOTAL 5,812,868 1,463,094,271 112,836 1,468,794,303 1,333,443 3,364,272 26,913 4,670,802 1,464,123,501 4,479,425Previous year ended 31st

March,2009 3,473,885 2,338,983 - 5,812,868 90,698 1,242,745 - 1,333,443 4,479,425 3,383,187

Current year (Rs.) Previous Year (Rs.)Deduction/Adjustments from Gross Block includes :Disposal/Retirement of assets 112,836 -

112,836 -Deduction/Adjustments from Depreciation includes :Disposal/Retirement of assets 26,913 -

26,913 -Depreciation for the year is allocated as given below:Charged to Profi t & Loss Account - -Transferred to Expenditure during construction

(Schedule-15)

3,364,272 1,242,745

3,364,272 1,242,745


SCHEDULE-4

CAPITAL WORK-IN-PROGRESS Amount Rs.

As at 01.04.09 Additions Deductions/

Adjustments

Capitalised As at 31.03.10

Development of Land - 33,089,430 - - 33089430

Roads, Bridges & Culverts - 305,673 - 305,673 -

Buildings

Others - 1,698,114 - - 1698114

Temporary Erections 1,159,118 275,732 - 1,434,850 -

Temporary Fencing- Plant - 516,500 - - 516,500

Temporary Construction -Water Supply & Drains -Plant 21,400 - - 21,400 -

Electrical Installations - 28,268 - - 28,268

Communication Equipment - 136,038 - - 136,038

Capital Expenditure on Assets not owned by the compnay - 104,718,280 - - 104,718,280

1,180,518 140,768,035 - 1,761,923 140,186,630

Expenditure pending allocation

Survey, Investigation,Consultancy & Supervision Charges 169,326,073 325,537,018 - - 494,863,091

Expenditure During Construction 62,048,767 127,261,389 - - 189,310,156

231,374,840 452,798,407 - - 684,173,247

TOTAL 232,555,358 593,566,442 - 1,761,923 824,359,877

Previous year 1,604,870 230,950,488 - - 232,555,358

31.03.2010 31.03.2009

SCHEDULE - 5 Amount (Rs.) Amount (Rs.)

CONSTRUCTION STORES AND ADVANCES

CONSTRUCTION STORES *

(At cost)

Steel 4,705,747 -

Cement 220,000 -

Others 4,500,954 -

9,426,701 -

Less : Provision for Shortages - -

9,426,701 -

Advance for Capital Expenditure(Unsecured, considered good)

Covered by Bank Guarantee 2,762,387,280 2,559,421,597

Others 293,862,710 540,493,739

3,056,249,990 3,099,915,336

Less : Provision for bad & doubtful advances - -

3,056,249,990 3,099,915,336

Total 3,065,676,691 3,099,915,336

* includes material in transit, under inspection and with contractors

SCHEDULE - 6

CASH & BANK BALANCES

Cash on hand 90,191 13,911

Balances with Scheduled Banks

Current Account 162,754,126 1,901,889

Term Deposit Account 31,000,000 193,510,561

Total 193,844,317 195,426,361

SCHEDULE - 7

OTHER CURRENT ASSETS

Interest Accrued on :

Term Deposits with Indian Banks 184,396 29,353

Total 184,396 29,353

SCHEDULE - 8

LOANS & ADVANCES

ADVANCES (Unsecured, Considered Good)

Employees 82,500 322,870

Amount Recoverable from others 4,270,397 1,249,118

Advance Tax & Tax deducted at source 749,330 70,037

Total 5,102,227 1,642,025

31.03.2010 31.03.2009

SCHEDULE - 9 Amount (Rs.) Amount (Rs.)

CURRENT LIABILITIES

Sundry Creditors

For Capital Expenditure

Other than Micro & Small Enterprises

NTPC Ltd. 23,765,238 9,662,937

Others 13,667,976 787,175

For Goods & Services

Other than Micro & Small Enterprises

NTPC Ltd. 20,300,281 8,591,833

Others 11,707,086 3,229,698

Deposits, Retention Money from contractors

& others 11,848,799 1,816,055

Other Liabilities 15,350,233 2,750,924

Total 96,639,613 26,838,622

SCHEDULE - 10

PROVISIONS

Fringe Benefi t Tax

As per last Balance Sheet 132,803 22,410

Adjustment during the year 9,998 407,694

Paid during the year 142,801 297,301

Closing Balance - 132,803

Employee Benefi ts

As per last Balance Sheet 647,683 714,122

Additions during the year - 55,796

Amount paid/adjusted during the year 647,683 122,235

Closing Balance - 647,683

TOTAL - 780,486

SCHEDULE - 11

OTHER INCOME

Interest from Indian Banks (Gross)

(Tax deducted at source Rs.5,94,978/-,

previous year Rs.70,037) 3,399,732 339,514

Interest from Contractors 916,951

Liquidated damages recovered 46,588 -

Other Miscellaneous receipts 44,091 -

4,407,362 339,514

Less : Income Transferred to Expenditure

During Construction (Schedule-15) 4,407,362 339,514

Total - -


31.03.2010 31.03.2009


SCHEDULE - 12

EMPLOYEES REMUNERATION AND BENEFITS

Salaries, Wages, Bonus, Allowances and

Benefi ts 77,121,611 15,923,703



86,270,991 18,506,272

Less : Transferred to Expenditure During

Construction (Schedule-15) 86,270,991 18,506,272

Total - -

SCHEDULE - 13

ADMINISTRATION AND OTHER EXPENSES

Rent 3,665,452 741,608


Offi ce Building 676,232 147,546

Others 42,972 286,280

Insurance 58,989 7,731

Rates & Taxes 20,000 -

Training Expenses 168,354 11,000

Communication Expenses 3,205,776 358,059

Travelling Expenses

Inland Travel 11,462,956 5,080,044

Tender Expenses 8183752

Less:- Income from sale of

tenders 246943 7,936,809 8,801,343


Statutory Audit out of pocket exp. 57,705 -

Advertisement and publicity 262,557 63,831

Security Expenses 2,113,978 409,707


Transit Hostel Expenses 858,207 149,278

Brokerage expenses 12,600 -

R&R expenses 2,034,305 -


Wages of daily rated manpower 1,903,728 119,548

Professional Charges & Consultancy 155,324 16,345

Legal Expenses 7,296 21,752,475

Postage & Courier Charges 56,158 10,008

EDP expenses - 27,102


Expenses on Hiring of Vehicles 4077621

Less:- Vehicle hire charge

recovery 0 4,077,621 1,236,605

Hire charges-Offi ce Equipment 427,250 124,950

Operating expenses of D.G.

sets 433,462 6,111

Furnishing Expenses 54,885 -

Subscription to Trade & Other Assocn. - 3,300

Preliminary Expenses written off - 3,880,180


Loss on disposal/writeoff of fi xed assets 43,804 -

42,137,240 44,507,386


Construction (Schedule-15) 41,968,886 40,616,206

Total 168,354 3,891,180

SCHEDULE - 14


FINANCE CHARGES


54,604 10,494


Construction (Schedule-15) 54,604 10,494

Total - -

31.03.2010 31.03.2009


SCHEDULE - 15


A EMPLOYEES REMUNERATION AND BENEFITS

Salaries, Wages, Bonus, Allowances and

Benefi ts 77,121,611 15,923,703



Total (A) 86,270,991 18,506,272

B ADMINISTRATION AND OTHER EXPENSES

Rent 3,665,452 741,608


Leased Buildings 676,232 147,546

Others 42,972 286,280

Insurance 58,989 7,731

Rates & Taxes 20,000 -

Communication Expenses 3,205,776 358,059

Travelling Expenses -

Inland Travel 11,462,956 5,080,044

Tender Expenses 8183752 -

Less:- Income from sale of

tenders 246943 7,936,809 8,801,343


Statutory Audit out of pocket exp. 57,705 -

Advertisement and publicity 262,557 63,831

Security Expenses 2,113,978 409,707


Transit Hostel Expenses 858,207 149,278

Brokerage expenses 12,600 -

R&R- expenses 2,034,305 -


Wages of daily rated manpower 1,903,728 119,548

Professional Charges & Consultancy 155,324 16,345

Legal Expenses 7,296 21,752,475

Postage & Courier Charges 56,158 10,008

EDP expenses - 27,102


Expenses on Hiring of

Vehicles 4077621 -

Less:- Vehicle hire charge

recovery 0 4,077,621 1,236,605

Hire charges-Offi ce Equipment 427,250 124,950

Operating expenses of D.G. sets 433,462 6,111

Furnishing Expenses 54,885 -

Subscription to Trade & Other Assocn. - 3,300


Loss on disposal/writeoff of fi xed assets 43,804 -

Total (B) 41,968,886 40,616,206

C DEPRECIATION 3,364,272 1,242,745

D INTEREST AND FINANCE CHARGES

FINANCE CHARGES


Total (D) 54,604 10,494

E LESS :- OTHER INCOME

Other Income-transferred from Schedule-11 4,407,362 339,514

Total (E) 4,407,362 339,514

F FRINGE BENEFIT TAX

Fringe Benefi t Tax 9,998 407,694

TOTAL (F) 9,998 407,694

GRAND TOTAL (A+B+C+D-E+F) 127,261,389 60,443,897


SCHEDULE-16

NOTES ON ACCOUNTS:

1. Estimated amount of Contracts remaining to be executed on capital account

and not provided for as on 31.03.2010 is Rs.3094.30 Crores. (Previous year:

Rs.2037.15 Crores.)

2. The conveyancing of the title of 1259.62 acres (previous year : 10.51 acres)

of Freehold Land of Value Rs.143.84 crores (previous year : Rs.23.85 lacs) in

possession of the company as on 31.03.2010 is awaiting completion of le-

gal formalities. Further, an amount of Rs.10.29 Crores (previous year : Rs.50.20

crores) is appearing as deposit for Land as on 31.03.2010 but possession is still

awaited.

3. Earning Per Share:

Earnings per Share has been calculated in accordance with the AS-20.

The elements considered for calculation of Earnings Per Share (Basic & Diluted)

are as under:


Net loss used as numerator (Rs.) ( 1,68,354 ) (38,91,180)

Weighted average number of equity

shares used as denominator. (Nos.) 34,08,21,918 13,97,70,137

Earning per Share

-Basic and Diluted. (Rs.) (0.00) (0.03)

4. Contingent liability: Claims against the company not acknowledged as debts is

Rs. NIL (Previous year: NIL).

5. All the employees of the company are on secondment posting from the hold-

ing company. i.e. NTPC Ltd. excepting one employee on deputation from

Ministry of Railways. Salaries paid to Employees on secondment and other

benefi ts to them have been entered in to the Books of Company on the basis

of transfer entries made by NTPC in this regard.

6. Expenses on operating leases of the premises for residential use of the em-

ployees amounting to Rs.20,62,841/- (previous year: Rs.2,53,390/-) are includ-

ed in Schedule-12-“Employees Remuneration and Benefi ts”. Similarly, lease

payments in respect of premises for offi ces/transit accommodation are shown

in Rent in Schedule-13- “Administration and other expenses”.

7. The employees remuneration and benefi ts includes Rs.47,76,559/- (Previous

Year: Rs.23,47,610/-) in respect of gratuity, leave encashment, post retirement

medical benefi ts, transfer traveling allowance on retirement / death, long ser-

vice awards to employees, retirement benefi ts, farewell gift on retirement and

economic rehabilitation scheme (for employees on secondment from NTPC

Ltd.) as apportioned by Holding company i.e. NTPC Ltd. on actuarial valua-

tion.

8. The schedule ‘5’ of construction stores and advances includes amounts of

Rs.255,94,21,597.00 (Previous year 31.03.2009: Rs.255,94,21,597.00) paid

to M/s Bharat Heavy Electricals Ltd. and Rs.10,29,31,122/- (Previous year

31.03.2009: Rs.50,20,05,798.00) deposited with District Magistrate and Col-

lector, Aurangabad, Bihar, towards main plant equipment supply packages

and land respectively.

9. Based on information available with the company, there are no suppliers/

contractors/service providers who are registered as micro, small or medium,

enterprise under “The Micro, Small and Medium Enterprises Development Act,

2006.

10. Company has incurred Rs.8,50,000/-(Previous year- Rs.Nil) during the year on

scholarship to poor students of project affected families, where the land is to

be acquired/to be acquired for company’s project as resolved by the board

of directors in their meeting.

11. Managerial remuneration paid/payable to Chief Executive Offi cer :

Current Year(Rs) Previous Year(Rs)


Contribution to provident fund &

other funds including gratuity &

group insurance 1,47,901 99,859

Other Benefi ts 5,35,932 2,26,604

In addition to the above remuneration the Chief Executive Offi cer has been al-

lowed the use of car including for private journey, on payment of Rs.780/- per

month.

The provisions for/contribution to gratuity, leave encashment and post retire-

ment medical facilities are ascertained on actuarial valuation done by the hold-

ing company on overall Company basis and hence not ascertainable sepa-

rately.

12. This year liability of Rs.12,50,000/- (Previous year : Nil ) has been provided

on account of price escalation for Site Leveling and Ash Dyke Contract as per

contract terms. Further, value of additions made in assets, such as Site Leveling

etc. based on estimates and provided in the books of accounts at the end of

fi nancial year have been shown as Current Liabilities.

13. As per AS-17, Segmental Reporting are not applicable.

14. Previous year fi gures have been re-grouped/re-arranged wherever necessary.

15. Information pursuant to part IV of schedule VI of the Companies Act, 1956.



Registration No. U 4 0 1 0 2 D L 2 0 0 7 P L C 1 7 0 6 6 1

Date Month Year




N I L N I L


N I L 1 5 0 0 0 0 0



5 5 5 8 1 7 9 5 5 5 8 1 7 9

Source of Funds

Paid-up Capital Capital Deposit Account

4 0 0 0 0 0 0 1 4 6 1 5 3 9

Secured Loans Reserves & Surplus

N I L N I L

Deferred Tax Liability Unsecured Loans

N I L N I L



5 3 5 4 1 6 0 N I L


1 0 2 4 9 1 N I L

Accumulated Losses

4 8 8 8



N I L 1 6 8

Loss before Tax Loss after Tax

1 6 8 1 6 8


0 . 0 0 N I L




G E N E R A T I O N O F E L E C T R I C I T Y N A







M. No. 09036

Place :Delhi

Date :08.05.2010



CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2010

Current Year Previous year

Rs. Rs.

A CASH FLOW FROM OPERATING ACTIVITIES

Net Loss as per Profi t and Loss Account (168,354) (3,891,180)

Adjustment for Depreciation - -

Operating Loss before Working Capital Changes (168,354) (3,891,180)

Adjustment for

Sundry Creditors & Provisions 42,037,403 15,544,992

Other Current Assets (155,043) (29,353)

Loans & Advances (3,460,202) (1,642,025)

38,422,158 13,873,614

Net Cash from Operating Activities-A 38,253,804 9,982,434

B CASH FLOW FROM INVESTMENT ACTIVITIES

Purchase of Fixed Assets and CWIP (1,990,226,848) (691,148,263)

Net Cash used in Investing Activities -B (1,990,226,848) (691,148,263)

C CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of Share Capital 1,500,000,000 2,499,000,000

Proceeds from Share Capital Deposit 450,391,000 (1,634,502,000)

Net Cash fl ow from Financing Activities-C 1,950,391,000 864,498,000

Net Increase/(Decrease) in Cash and Cash equivalents(A+B+C) (1,582,044) 183,332,171

Cash and Cash equivalents(Opening Balance) 195,426,361 12,094,190

Cash and Cash equivalents(Closing Balance) 193,844,317 195,426,361

NOTES :

Cash and Cash Equivalents consists of Cash in Hand and balance with Banks

Figures for Previous year have been regrouped/rearranged wherever necessary.







M. No. 09036

Place : Delhi

Date : 08.05.2010

AUDITORS’ REPORT TO THE MEMBERS OF


1. We have audited the attached Balance Sheet of BHARTIYA RAIL BIJLEE

COMPANY LIMITED (a Subsidiary Company of N.T.P.C. Ltd.) as at 31st March

2010, and the related Profi t & Loss Account and Cash Flow Statement for

the year ended on that date annexed thereto, which we have signed under

reference to this report. These fi nancial statements are the responsibility of the

company’s management. Our responsibility is to express an opinion on these

fi nancial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally

accepted in India. Those Standards require that we plan and perform the

audit to obtain reasonable assurance about whether the fi nancial statements

are free of material misstatement. An audit includes examining, on a test basis,



estimates made by management, as well as evaluating the overall fi nancial


for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003, as amended by

the Companies (Auditor’s Report) (Amendment) Order, 2004, issued by the

Central Government of India in terms of Sub-section (4A) of Section 227 of ‘

The Companies Act, 1956’ of India (the ‘Act’) and on the basis of such checks

of the books and records of the company as we considered appropriate and

according to the information and explanations given to us, we give in the

Annexure a statement on the matters specifi ed in paragraphs 4 and 5 of the

said Order.

4. Further we report that:

(a) We have obtained all the information and explanations, which to the

best of our knowledge and belief were necessary for the purposes of

our audit;

(b) In our opinion, proper books of accounts as required by law have been

kept by the company so far as appears from our examination of those

books;

(c) The Balance Sheet, Profi t and Loss Account and Cash Flow Statement

dealt with by this report are in agreement with the books of accounts

(d) In our opinion, the Balance Sheet, Profi t and Loss Account and Cash

Flow Statement dealt with by this report comply with the accounting

standards referred to in sub-section (3C) of Section 211 of the Act;

(e) Being a Government Company, pursuant to Notifi cation No.GSR 829(E)

dated 17/07/2003 issued by the Government of India, provisions of

clause (g) of sub-section (1) of section 274 of the Companies Act, 1956

are not applicable to the company.

(f) In our opinion and to the best of our information and according to the

explanations given to us, the said fi nancial statements together with the

notes thereon give in the prescribed manner the information required by

the Act and give a true and fair view in conformity with the accounting

principles generally accepted in India:

(i) in the case of the Balance Sheet, of the state of affairs of the

company as at 31st March, 2010 and

(ii) in the case of the Profi t and Loss Account of the loss for the year

ended on that date.

(iii) in the case of the Cash Flow Statement, of the cash fl ows for the

year ended on that date.

For H.S.MADAN & CO.


(H.S. MADAN)

Place : Delhi PARTNER

Date : 8th May, 2010 M. No. 09036

ANNEXURE TO AUDITOR’S REPORT

REFFERED TO IN PARAGRAPH 3 OF THE AUDITOR’S REPORT OF EVEN DATE TO

THE MEMBERS OF BHARTIYA RAIL BIJLEE COMPANY LIMITED ON THE FINANCIAL

STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2010

(i) (a) The company is maintaining proper record showing full particulars

including quantitative details and situation of fi xed assets.

(b) The fi xed assets of the company have been physically verifi ed by the

management during the year and no material discrepancies have been

noticed.

(c) In our opinion and according to the information and explanations given

to us, no substantial part of fi xed assets has been disposed off during

the year.

(ii) The Company does not have inventory. Accordingly, the provisions of clause

4(ii)(b) & (c) of the Companies (Auditor’s Report) Order, 2003 are not

applicable to the Company.

(iii) The company has neither granted nor taken any loans, secured or unsecured,

to/from companies, fi rms or other parties covered in the register maintained

under Section 301 of the Companies Act, 1956. Accordingly the provisions of

clauses 4(iii)(b), (c) & (d) of the Companies (Auditor’s Report) Order, 2003

are not applicable to the Company.

However, Share Capital Deposit still has an unadjusted balance of Rs.146.15

Crores as on 31/03/2010 against which no shares have been allotted by

Company so far.

(iv) In our opinion and according to the information and explanation given to us,

there are adequate internal control procedures commensurate with the size

of the company and the nature of its business with the regard to purchase of

fi xed assets. The company has not made any purchase/sale of goods. During

the course of our audit, we have not observed any continuing failure to correct

major weakness in internal control system.

(v) According to the information given to us, there are no transactions that need

to be entered in the register maintained U/s 301 of the Act. Company has

awarded a Consultancy Contract of Rs.76.00 Crores to NTPC Ltd., holding


Company. During this year, payments have been made to the tune of Rs.31.69

Crores against this contract. Most of the Directors in Company are from NTPC

Ltd. and Interest of Directors as required U/s 299 of Companies Act has already

been disclosed in the Board’s Meetings. As per Notifi cation No. GSR 233

dt.31/01/1978 published in the Gazattee of India, Section 3(i) dt.11/02/1978,

provisions of Section 297 are not applicable.

(vi) According to the information given to us, Company has not accepted deposits

under the provisions of section 58A & 58AA of the Companies Act, 1956 and

the Companies (Acceptance of Deposits) Rules, 1975

(vii) The provision of the order related to internal audit are not applicable to the

company. However, Internal Audit have been conducted by the Holding

Company, i.e. NTPC Ltd.

(viii) The maintenance of cost records under clause (d) of sub-section (1) of Section

209 of the Act is not applicable to the company since it has not commenced

any activity related to generation of electricity.

(ix) (a) All employees of the company are on secondment posting from its

holding company, i.e. NTPC Ltd. except one employee on deputation

from Ministry of Railways. According to information given to us, holding

company as well as Ministry of Railways are depositing undisputed

statutory dues like provident Fund with appropriate authorities.

(b) According to the information and explanation given to us, no

undisputed amount payable in respect of income tax, sales tax were

in arrears as at 31st March, 2010 for a period of more than six months

from the date they became payable.

(x) This clause is not applicable as the company is not in existence for 5 years or

more from the date of registration till 31st March, 2010.

(xi) This clause is not applicable as the company has not taken any loan from

fi nancial institution, bank or by way of issue of debentures.

(xii) The company has not granted any loans and advances on the basis of security

by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute applicable to chit fund/nidhi/mutual

benefi t fund/societies are not applicable to the company.

(xiv) The company is not dealing or trading in shares, securities, debentures or other

investments and hence, requirements of paragraph 4 (xiv) are not applicable

to the company.

(xv) In our opinion and according to the information and explanations given to us,

the company has not given any guarantee for loans taken by others from banks

or fi nancial institutions during the year.

(xvi) The Company has not taken any term loan during the year.

(xvii) On the basis of an overall examination of the balance sheet of the company,

in our opinion and according to the information and explanations given to us,

there are no funds raised on a short-term basis which have been used for long-

term investment, and vice-versa.

(xviii) The company has made preferential allotment of 15.00 Crore shares at Face

Value of Rs.10.00 each to N.T.P.C Ltd. and Ministry of Railways, parties and

companies covered in the register maintained under Section 301 of the

Act during the year. In our opinion and according to the information and

explanations given to us, the price at which such shares have been issued is

not prejudicial to the interest of the company.

(xix) The Company has not issued any debentures

(xx) The Company has not raised money by public issue.

(xxi) According to the information and explanations given to us, no fraud on or by


For H.S.MADAN & CO.


(H.S. MADAN)

Place : Delhi PARTNER

Date : 8th May, 2010 M. No. 09036


SECTION 619 (4) OF THE COMPANIES ACT, 1956, ON THE ACCOUNTS OF BHARTIYA RAIL BIJLEE COMPANY LIMITED, NEW DELHI FOR THE YEAR ENDED 31 MARCH 2010.

The preparation of fi nancial statements of BHARTIYA RAIL BIJLEE COMPANY

LIMITED, New Delhi, for the year ended 31 March 2010 in accordance with the

fi nancial reporting framework prescribed under the Companies Act, 1956, is the

responsibility of the management of the Company. The statutory auditors appointed

by the Comptroller and Auditors General of India under Section 619(2) of the

Companies Act, 1956, are responsible for expressing opinion on these fi nancial

statements under Section 227 of the Companies Act, 1956, based on independent

audit in accordance with the auditing and assurance standards prescribed by their

professional body the Institute of Chartered Accountants of India. This is stated to

have been done by them vide their Audit Report dated 08 May 2010.

I, on behalf of the Comptroller and Auditors General of India, have Conducted a

supplimentry Audio under section 619(3) (b) of the companies Act, 1956 of

the fi nancial statement of BHARTIYA RAIL BIJLEE COMPANY LIMITED, New Delhi

for the year ended 31 March 2010. This supplimentry audit has been carried out

independently without access to the working papers of the statutary auditors and

is limited primarily to inquiries of the statutory auditors and company personnel

and a selective examination of some of the accounting records. On the basis of my

audit nothing signifi cant has come to my knowledge which would give rise to any

comment upon or suppliment to Statutory Auditor’s report under section 619(4) of

the Companies Act, 1956.

Place: New Delhi

Dated: 2 June, 2010



(M. K. Biswas)



ntpc annual report-2010ntpcindia.com/.../annual_reports/2009-10-subsidiary-companies.pdf · 34th...

Documents